A new report claims that Xbox expects its next-generation console to cost as much as $1,800 and is currently targeting a 2028 release.
A new article from Fortune claims that Microsoft has internally projected that its next Xbox console, codenamed Project Helix, will cost consumers between $1,200 - $1,800. The article notes that Microsoft could choose to subsidize those costs to come in at a lower price point, but unless the tech giant is will to take major losses on the console that would go beyond normal standards, it seems likely that the machine will still cost over $1,000.
Of course, maybe a miracle could happen and the costs for the parts could lower in the coming years, but the odds of that seem excessively low. It's not uncommon for platform holders to take a loss on hardware, as the real money is made on games and subscriptions. However, Xbox doesn't have the same market share that it had 15 years ago. It is harder to justify big gambles, but the cost of the hardware itself may be a gamble which puts Microsoft between a rock and a hard place.
Fortune noted that Microsoft has also moved up engineering deadlines on Project Helix, instructing the team to move faster on building the hardware. As a result, Microsoft has also employed the use of AI to improve the productivity. Xbox CEO Asha Sharma told the outlet that they won't use “AI for AI’s sake,” and are using it to solve engineering and performance problems.
Fortune also revealed that Xbox is also planning to release a handheld by holiday 2027, though it's unclear how linked this will be to Project Helix. Sharma has stated before that Helix is a "family" of devices, so this handheld could be the first step. While some initially thought that may mean this generation will have another Xbox Series X and S situation, with one console that is more entry level and another that is for more hardcore players, it may be a bit different.
Instead of a weaker console, Xbox may leverage less power inside of a handheld, which may be more appealing and sensible. Xbox previously stated we would hear more about Project Helix by the end of year, so maybe we will learn more in November for the company's 25th anniversary.
Ultimately, it sounds like the next console generation is going to look a lot different than previous ones. PlayStation is also rumored to have its own handheld companion in the works and reports suggest that Sony will likely have a costly console as well. A recent rumor suggested that PS6's RAM and storage would cost $680 alone, which is already more than any PlayStation console's launch price except for the PS5 Pro. With the additional required components, it's expected the PS6 will also brush up against, if not exceed the $1,000 price point.
Ultimately, it seems like the age of the affordable console may be coming to an end, at least for now. Whether prices will ever come back down remains to be seen, but it doesn't seem like it will happen any time soon.