Microsoft is preparing its next generation gaming hardware under the codename Project Helix, aiming for a holiday 2028 release. The plan pairs the home console with an earlier handheld device scheduled to arrive by late 2027. However, rising hardware production costs could push the retail price of the main console past $1000.
Fortune reports that Xbox head Asha Sharma is personally managing development timelines for Project Helix. Engineering teams recently saw their delivery deadlines shortened by several months to accelerate production. Inside Microsoft, estimated manufacturing costs for the console currently sit between $1200 and $1800. Even if Microsoft decides to subsidize part of the hardware, the final store price will likely approach or exceed $1000. At that price level, consumers will demand performance on par with a dedicated gaming PC.
Development of the portable Xbox triggered an internal clash between the Windows and Xbox software divisions. The Windows engineering group pushed to use a lightweight build of Windows. The Xbox team insisted on a custom operating system dedicated strictly to gaming performance. During the debate, 1 senior leader reportedly threatened to cancel the portable hardware if Microsoft forced the adoption of Windows. The Xbox team won the dispute, retaining full authority over the software that powers the handheld.
