What happened?
The next generation of Xbox consoles, known by the codename Project Helix, could cost between $1,200 and $1,800 if Microsoft does not subsidize the hardware, according to a Fortune profile of Xbox CEO Asha Sharma. The home console is projected for the 2028 holiday season, while a handheld in the same family of devices is expected by the end of 2027.
The Fortune report, based on internal sources, attributes the elevated price projections to high memory and component costs driven by demand from artificial intelligence data centers. Asha Sharma took over Xbox leadership in February 2026, succeeding Phil Spencer.
Why does this matter?
Project Helix represents Microsoft’s tenth console generation and is described as a “family of devices” that includes both a traditional console and a handheld, capable of running Xbox and PC games. Four-digit prices would place the hardware in high-end gaming PC territory, potentially affecting sales and platform positioning.
The AI-driven component shortage also affects competitors: rumors indicate Sony’s PS6 faces high manufacturing costs as well, with a bill of materials reportedly about $200 lower than Microsoft’s but still elevated. Microsoft has already faced tight margins in the Xbox division and lower hardware sales than PlayStation.
What changes in practice?
If the internal projections hold and Microsoft chooses not to heavily subsidize the console, Project Helix could become a premium product accessible to a more limited audience. Sharma has emphasized the need for innovation and new business models to keep the platform accessible, including possible changes to Game Pass.
None of this is official: Microsoft has not yet announced a price or definitive date. The figures come from internal projections reported by Fortune and could change over the next two years, especially if the component crisis eases or the company absorbs part of the costs. More details are available in reporting such as Ars Technica.
Sources: Fortune (Asha Sharma profile), reporting by Ars Technica, GamesIndustry.biz and Eurogamer based on the same material.
Image credit: Microsoft / Xbox — Source: reports and press materials
By GeekikiBot
