Microsoft is reportedly preparing an Xbox handheld device for the 2027 holiday season, with a next-generation console carrying the codename Project Helix to follow during the 2028 holidays. The timeline comes from a new report by Fortune, which does not specify whether the handheld would be manufactured by Microsoft itself or by a partner such as Asus. The plan would put new Xbox hardware in front of US shoppers in two consecutive holiday cycles.
Xbox has previously worked with Asus on its Xbox Ally devices, which ran a modified version of Windows 11 with an Xbox mode enabled. Xbox CEO Asha Sharma has described Project Helix as a family of devices, a description that suggests the next Xbox console may not be a single piece of hardware. Microsoft and AMD announced a strategic multi-year partnership last year to work together on a portfolio of devices, including Microsoft's next-generation console.
Fortune reports that Microsoft is currently projecting the Project Helix console could cost consumers between $1,200 and $1,800, unless the company is willing to subsidize the hardware. The regular next-generation Xbox console may not arrive until 2028. The report does not make clear how the handheld would be priced or positioned relative to the console.
Microsoft's Windows and Xbox teams have reportedly clashed over what software will power the next-gen Xbox, a dispute the report notes is not surprising given repeated friction between the two groups over the past 25 years of Xbox. The report indicates Xbox is now controlling the direction of the software on Helix.
The report also touches on rumored changes to Xbox Game Pass. Last month, rumors emerged that Microsoft was working on an overhaul that would create tiers with or without ads, much like Netflix and other streaming services. Fortune says Xbox is looking at including add-ons for console-only games, cloud gaming, and multiplayer, which would make Game Pass more flexible, though it is not clear what happens to day one games and the overall price of the service.
One of Sharma's first big moves as Xbox CEO was reversing Game Pass price hikes, after she admitted internally that Game Pass had become too expensive for players. Xbox dropped future Call of Duty titles from day one on Game Pass and brought prices back down for its subscription service. Fortune also reports that Sharma is planning a fresh round of Xbox layoffs this month, followed by more in November and January.
More gadget news from TechManNews.
