Microsoft’s next Xbox, Project Helix, could cost $1,200 to $1,800, report says

Microsoft’s internal estimates for Project Helix, its next-generation Xbox, put the console’s retail price at $1,200 to $1,800, according to a Fortune Magazine profile of Xbox CEO Asha Sharma, as reported by Eurogamer. Microsoft has not confirmed the figures.

Eurogamer says the range is not a component or manufacturing cost. It is the price Xbox reportedly expects consumers to pay if the hardware is not subsidized.

The same report repeats earlier details about Helix’s makeup and timing. Sharma has previously described Helix as a family of devices, and the report says it will include two consoles: a handheld and a traditional home console. The handheld is reportedly planned for holiday 2027. The home console would follow in holiday 2028.

According to the report, the Xbox and Windows teams disagreed over which operating system the handheld should run. The Windows team reportedly wanted a slimmed-down version of Windows Home. The Xbox team reportedly preferred dedicated software built to get the most gaming performance out of the device. The dispute reportedly became serious enough that an Xbox executive threatened to cancel the handheld. The report does not say what operating system the home console will use. Eurogamer notes that the console was conceived as a bridge between PC and Xbox that could play games from both.

Eurogamer links the estimated price to a global memory and storage shortage driven by AI demand. The shortage has pushed up the cost of consumer electronics, and Xbox, PlayStation and Nintendo have all raised the prices of their current consoles. Eurogamer says the Xbox Series X launched at $500 and now costs $800, and the Series S has gone from $300 to $500. At $1,200, Helix would cost 50 percent more than the Series X does today.