Microsoft reportedly plans to launch a “next-generation handheld” Xbox for the 2027 holiday season. The next-generation Xbox console, codenamed Project Helix, would then launch during the 2028 holidays, according to a new report from Fortune.
The report did not specify whether the handheld would be made by a manufacturer like Asus or by Microsoft itself. Xbox partnered with Asus for its Xbox Ally devices, which ran a modified version of Windows 11 with an Xbox Mode enabled. Xbox CEO Asha Sharma also described Project Helix as a “family of devices,” suggesting that Microsoft’s next Xbox console may be more than just a piece of hardware.
Last year, Microsoft and AMD announced a “multi-year strategic partnership” to work together on “a portfolio of devices,” including Microsoft’s next-generation console. It’s looking increasingly likely that this will include a line of “Xbox” devices, running on AMD’s new chips.
The standard next-gen Xbox console might not arrive until 2028, however. Fortune reports that Microsoft currently projects that its Xbox Project Helix console could cost “between $1,200 and $1,800” for consumers, unless Microsoft is willing to subsidize the cost of the hardware.
Microsoft’s Windows and Xbox teams are also reportedly clashing over the software that will power the next-gen Xbox. This isn’t terribly surprising given that the two teams have faced each other many times over the last 25 years of Xbox. It appears, however, that Xbox now controls the direction of the software on Helix.
The report also addresses rumors of changes to Xbox Game Pass. Last month, rumors emerged that Microsoft was working on a Game Pass overhaul that would create ad- and ad-free tiers, much like Netflix and other streaming services. Fortune says Xbox plans to include add-ons for console-only gaming, cloud gaming, and multiplayer. This would make Game Pass much more flexible, but it’s unclear what will happen to day one games and the overall price of Game Pass.
One of Sharma’s first big moves as Xbox CEO was to reverse the Game Pass price hike, after admitting internally that “Game Pass has become too expensive for gamers.” Xbox dropped future Call of Duty titles from day one on Game Pass and lowered prices on its subscription service.
Fortune also reports that Sharma is planning another round of layoffs at Xbox this month, followed by more in November and January.
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