Project Helix, Microsoft’s next-generation Xbox console-PC hybrid, could cost between $1,200 and $1,800 when it launches before the 2028 holiday season. The figures come from Microsoft’s internal estimates reported by Fortune, although the final retail price could change.
Microsoft has described Project Helix as a “very premium, very high end” device with the capabilities of a powerful gaming PC. At the upper end of the reported range, it would be the most expensive Xbox ever and cost twice as much as the current PlayStation 5 Pro.
Console makers often subsidise hardware and recover costs through game sales and subscriptions. Microsoft could therefore choose to absorb some of the expense, but component prices remain unpredictable. Xbox CEO Asha Sharma has also warned that rising costs could affect the business.
Project Helix is intended to play Xbox and PC games
Microsoft has confirmed that Project Helix will run “your Xbox and PC games”. That makes the reported price especially striking for a console, but potentially more understandable if the machine delivers performance comparable to a high-end gaming computer.
For Australian buyers comparing large hardware purchases, the final local price would depend on Microsoft’s eventual regional pricing and exchange rates. Until the company announces firm details, the $1,200 to $1,800 figure should be treated as an internal projection rather than a confirmed retail price.
A new Xbox handheld is planned for 2027
Before Project Helix arrives, Microsoft and Asus are reportedly planning another next-generation Xbox handheld for the 2027 holiday season. The companies released the Xbox Ally in October 2025 in two versions: the $600 Xbox Ally and the $1,000 Xbox Ally X.
The existing handheld is reportedly an early version of Microsoft’s future Xbox direction. However, the next model’s development has exposed a disagreement between the Xbox and Windows teams over its software.
Windows and Xbox teams reportedly disagree
The Windows team wants the handheld to use a trimmed-down version of Windows Home. Sharma’s Xbox team reportedly prefers software built and controlled specifically for gaming performance. The dispute has become serious enough that Xbox leadership has reportedly considered cancelling the next-generation handheld.
That software decision will matter for more than menus and settings. Windows could offer broader PC compatibility, while a dedicated Xbox platform might provide a more focused experience. Microsoft has not publicly confirmed the final approach.
The Xbox business is undergoing a broader reset
Project Helix and the handheld are being developed as Microsoft reshapes its gaming business. The reset includes thousands of gaming-division layoffs and major changes to Xbox Game Studios and other owned studios.
Microsoft has also announced Xbox XP and Xbox Labs. The latter is expected to focus on game development using generative artificial intelligence. At the same time, the company is reportedly considering a major Game Pass overhaul that would replace its one-size-fits-all structure with a more flexible, à la carte subscription model.
Further layoffs are reportedly expected in the coming months. Whether Sharma can rebuild momentum for Xbox remains uncertain, and a premium console price would give the company another significant challenge to manage.
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