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Project Helix May Retail for $1,200–$1,800 as Microsoft Plans 2027 Handheld

Rising memory and storage costs are forcing Microsoft to weigh hardware subsidies, tighter Xbox control of the device software, and Game Pass changes to try to keep prices within reach.

Overview

  • A Fortune profile published Tuesday, October 20, 2026, says internal Xbox projections put Project Helix at roughly $1,200 to $1,800 unless Microsoft accepts losses on each unit to subsidize the retail price.
  • Microsoft is reportedly targeting a next‑generation Xbox handheld for the 2027 holiday season and a home console under the Project Helix name for the 2028 holidays.
  • People briefed on internal discussions told reporters the Xbox team and the Windows group have clashed over the handheld’s operating system and that Xbox is largely directing the software approach.
  • Executives are considering changes to Game Pass that would let customers buy tiered or à la carte features such as cloud streaming, console-only titles, and multiplayer to help generate revenue for hardware affordability.
  • Suppliers and internal leaders cite global shortages and rising costs for memory and storage as the main drivers of higher prices, a dynamic that could keep next‑gen console costs elevated and push Microsoft to use financing, subsidies or new subscription levers to protect consumers.