Xbox's Next Console May Reportedly Cost As Much as $1,800, New Handheld Rumored to Launch Next Year Before Helix

Xbox is reportedly planning to launch its next-generation console, code-named Project Helix, with a high price tag of up to $1,800, according to a new report from Fortune. The new Xbox console is set to release in 2028, with Microsoft internally projecting a price range of $1,200 - $1,800 for consumers. The company may subsidize the costs to lower the price point, but it is unlikely that Microsoft would take significant losses, which are typically beyond normal standards.

The need for a higher-priced console is due to Microsoft's reduced market share compared to its 15-year-old position, making it harder to justify large risks. However, Microsoft has accelerated the engineering deadlines for Project Helix and employs AI to boost productivity. Xbox CEO Asha Sharma emphasized that they will not use "AI for AI’s sake" and will focus on solving engineering and performance problems.

In addition to Project Helix, Xbox is also developing a handheld gaming device for release before the end of 2027. While it is unclear how closely linked this handheld will be to Project Helix, it could potentially mark a new direction for the Xbox family of devices. Unlike previous variations of Xbox Series X and S, the handheld may have less powerful hardware, making it more appealing and sensible for consumers.

The next console generation appears to be taking a different approach compared to previous generations. Sony is also rumored to be working on a handheld companion for its upcoming PS6 console, which is expected to have high RAM and storage costs, potentially pushing the price beyond $1,000. It seems that the era of affordable consoles may be coming to an end, and the question remains whether prices will ever return to lower levels.