Microsoft Plans High-End Project Helix Console for 2028 and New Gaming Handheld for 2027

Image: Ars Technica · Source

Microsoft aims to launch its premium Project Helix console priced between $1,200 and $1,800 in 2028, alongside a next-generation gaming handheld targeted for late 2027, reflecting shifts in gaming hardware costs and design strategies.

Microsoft has revealed plans for significant expansions in its gaming hardware lineup over the coming years. At the forefront is Project Helix, a new console expected to release during the 2028 holiday season, with an internally projected price range of $1,200 to $1,800. This pricing represents a historically high entry point for gaming consoles, though Microsoft may subsidize costs to reduce the consumer price. The elevated price band reflects broader industry trends such as the slowdown of Moore’s Law and complexities introduced by AI-driven component shortages, which have increased the costs of cutting-edge gaming hardware. For context, recent console pricing trends include the Steam Machine surpassing $1,000 at launch, the PlayStation 5 Pro priced around $900, and the Xbox Series X starting at $750 despite its six-year market presence. Alongside Project Helix, Microsoft is reportedly developing a next-generation gaming handheld slated for release by the end of 2027. Internal discussions have focused on the handheld’s operating system — whether it should run a streamlined version of Windows Home or a specialized OS developed by the Xbox team. These debates reportedly resulted in the Xbox group gaining substantial control over the handheld’s OS direction, after threats from senior executives to cancel the device if Windows was mandated. Microsoft is also accelerating Project Helix’s development timeline by several months, leveraging AI tools to enhance efficiency. Furthermore, plans for Xbox Game Pass include a move toward a heavily tiered, a la carte model where subscribers could select add-ons such as console-only games, cloud gaming, and multiplayer options individually. This marks a departure from the current subscription model, which bundles these features together. The strategic direction under Xbox CEO Asha Sharma faces scrutiny amid speculation about potential spinoffs and restructuring, though Microsoft officials affirm ongoing commitment to the brand’s growth. Overall, Microsoft’s upcoming hardware introductions and pricing strategies highlight a shift towards premium, high-performance gaming experiences that address evolving technological and market dynamics.