Xbox Project Helix May Cost Up to $1,800 USD, New Handheld Reportedly Due For 2027

Microsoft’s next-generation Xbox could carry a staggering price tag, potentially making it one of the most expensive gaming consoles ever released.

According to a new Fortune report, Microsoft’s upcoming console, codenamed ‘Project Helix‘, could cost between $1,200 and $1,800 USD when it supposedly launches sometime during 2028. The figures reportedly come from Microsoft’s internal projections, though the company could lower the retail price by subsidizing some hardware costs. This staggeringly high price tag likely reflects the ongoing component shortage hardware manufacturers are experiencing due to the AI boom.

Microsoft is also said to be developing a new Xbox handheld targeting a holiday 2027 release, potentially arriving a full year before Project Helix. Unlike the existing ROG Xbox Ally X20, which runs Windows 11 with an Xbox-focused interface, the rumoured handheld could offer a more console-like experience.  However, Microsoft reportedly faces internal disagreements over its operating system. Some executives favour a streamlined version of Windows, while others want a dedicated Xbox operating system.

The report also suggests Microsoft is considering significant changes to Xbox Game Pass, potentially introducing an à la carte subscription model where customers select individual benefits such as cloud gaming, multiplayer and console access. Xbox Game Pass reached its price ceiling this year, becoming so expensive that subscribers walked away. In response, Microsoft cut prices for its Game Pass Ultimate tier.

Microsoft officially announced Project Helix earlier this year, confirming plans for hardware capable of playing both Xbox and PC games. The latest rumours come as Microsoft’s gaming division undergoes substantial restructuring under Xbox CEO Asha Sharma, who recently dismissed speculation that Microsoft could sell Xbox. At $1,800 USD, the console could cost Canadian consumers well over $2,400 CAD before taxes, depending on exchange rates and regional pricing.

The hardware plans come amid considerable uncertainty surrounding Xbox’s future. Microsoft has eliminated thousands of gaming jobs across studios including Obsidian, Halo Studios, id Software and Vancouver-based The Coalition. The restructuring has also involved studio closures and consolidations. According to Fortune, Microsoft is reportedly considering further layoffs in October, November, and January, though those plans could change.

Microsoft has not officially confirmed pricing, release dates or specifications for either device.