Xbox Hardware Roadmap

Microsoft is reportedly planning to launch an Xbox next-generation handheld device for the holiday season of 2027. The Xbox next-gen console, codename Project Helix, would then launch in the holidays of 2028, according to a report from Fortune.

Microsoft Reportedly Plans Xbox Handheld in 2027, Next-Gen Console in 2028

The next Xbox could cost between $1,200 and $1,800 if Microsoft doesn’t subsidize it.

Potential Hardware Partners and Design

The report does not make it clear whether the handheld would be manufactured by a partner like Asus or by Microsoft itself. Xbox previously teamed up with Asus for its Ally devices, which ran a modified version of Windows 11 with an Xbox mode enabled. Xbox leadership has also described Project Helix as a family of devices, suggesting the next Xbox hardware ecosystem may consist of multiple form factors.

Last year, Microsoft and AMD announced a strategic multi-year partnership to work together on a portfolio of devices, including Microsoft’s next-generation console. It appears increasingly likely that this lineup will include a range of Xbox hardware running on AMD chips.

Pricing Projections

The regular next-generation Xbox console may not arrive until 2028. Fortune reports that Microsoft is currently projecting its Xbox Project Helix console may cost between $1,200 and $1,800 for consumers, unless the company chooses to subsidize the hardware cost.

Software and Game Pass Strategy

Microsoft’s Windows and Xbox teams have also reportedly clashed over what software will power the next-generation hardware. However, the Xbox division appears to be controlling the direction of the software for Helix.

The report also touches on rumored changes to Xbox Game Pass. Reports suggest Microsoft is exploring an overhaul to create subscription tiers with or without ads, alongside add-ons for console-only games, cloud gaming, and multiplayer features.

Previous adjustments to the subscription service involved reversing prior price hikes and changing release strategies for specific titles.

Fortune also reports that leadership is planning organizational restructuring and workforce reductions within the division.