Overview
- A Fortune profile published Tuesday reports Microsoft’s internal projection that its next‑generation console, codenamed Project Helix, could retail for between $1,200 and $1,800, and the company has not confirmed a final price or launch date.
- The same reporting says Xbox plans a next‑generation handheld targeted for the 2027 holiday season and a flagship Helix console targeted for the 2028 holidays as part of a multi‑device strategy.
- Microsoft and industry sources point to sharply higher memory and NAND storage prices driven by AI data‑center demand as the main reason for the added hardware cost pressure, with Microsoft saying those component costs rose more than 2.5 times and could rise further by late 2027.
- Internal tensions surfaced over software for the devices, with Windows leaders favoring a trimmed Windows build and Xbox leaders insisting on a bespoke gaming OS; Fortune reports the dispute grew so heated an executive threatened to cancel the handheld but Xbox now largely controls OS direction.
- The company is weighing whether to absorb some hardware cost or protect margins by changing Game Pass into a tiered, à la carte service, a decision that will shape affordability for players and could alter how Xbox recoups hardware losses.