Rumor: Project Helix Could Cost Up to $1,800 and Launch in 2028; Xbox Handheld Reportedly Coming in 2027
Microsoft’s next Xbox console could be a much more expensive purchase than players are used to.
With the rising cost of memory and storage putting pressure on the gaming industry, the company is reportedly making some big decisions about its future hardware and Xbox Game Pass service.
According to a new report, Microsoft’s next-generation home console, known as Project Helix, is internally expected to cost between $1,200 and $1,800. The console is also reportedly planned for Christmas 2028, while a new Xbox handheld could arrive during the 2027 holiday season.
Microsoft Reportedly Plans Major Xbox Game Pass Changes
This information comes from Fortune, which also noted that the expected price is based on Microsoft’s internal estimates and could change if the company decides to cover part of the manufacturing costs itself. Without that support, Project Helix could become one of the most expensive gaming consoles ever released.
One of the main reasons behind the expected price increase is the growing demand for parts used in artificial intelligence. As more companies build AI systems, demand for memory and storage has increased, making these parts harder to find and more expensive.
This has pushed up the cost of RAM and NAND storage, both of which are needed to build gaming consoles. The costs linked to the console’s hardware design are also adding to the expected price.
According to the same report, Microsoft is also reportedly planning major changes to Xbox Game Pass. The company is looking at a new subscription system that would let players choose which features they want to pay for instead of getting everything through a fixed package.
Under the proposed system, players could select services such as cloud gaming, online multiplayer, or access to console-only game libraries. These options would be offered separately, allowing users to build a subscription based on the features they actually use.
However, Microsoft has not announced the prices for these possible Game Pass options, and it remains unclear when the changes could take effect.
Meanwhile, Fortune also reported disagreements between the Xbox and Windows teams over the operating system for Microsoft’s upcoming hardware. Windows executives reportedly wanted the new Xbox handheld to use a trimmed-down version of Windows Home, while the Xbox team wanted more control over its software to improve gaming performance.
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The disagreement became so serious that a senior Xbox executive reportedly threatened to cancel the handheld project rather than use the Windows version. Xbox now has most of the control over the software’s direction, although both teams continue to work together.
Alongside these changes, Xbox CEO Asha Sharma is also reportedly planning further job cuts. According to the report, more layoffs are scheduled for October and November 2026, as well as January 2027. However, these plans are not final and could still change.
For now, all these reports remain unconfirmed, so we should take them with a pinch of salt, as Microsoft’s final plans could still change. As more information becomes available, we’ll make sure to keep you guys updated here at MP1st.
In other news, Asha Sharma has explicitly stated that Xbox is not for sale and promised to do “whatever it takes” to set the gaming division up for long-term success.
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