Microsoft’s next-generation Xbox could come with a seriously steep price tag, with a new report suggesting the upcoming Project Helix console could cost as much as $1,800 when it launches in 2028.
According to a new report from Fortune, which profiles Xbox CEO Asha Sharma, the console is currently projected to cost between $1,200 and $1,800, unless Microsoft decides to subsidise the hardware. That’s a considerable amount for a gaming console, although Project Helix is expected to offer more than a traditional Xbox, with support for both Xbox and PC games.
The report also sheds some light on Microsoft’s hardware plans. The company is reportedly preparing to launch a new Xbox handheld during the 2027 holiday season, followed by the full Project Helix console around the same period in 2028.
Sharma previously hinted that Project Helix would be a “family” of gaming devices, suggesting Microsoft is looking beyond a single console for its next generation of hardware.
One of the biggest reasons behind the potential price increase is the rising cost of components. Demand for AI infrastructure has driven up prices for RAM and other hardware, making it increasingly expensive to manufacture high-performance devices.
Unless Microsoft absorbs some of those costs, the next Xbox could end up being significantly more expensive than many gamers are used to paying.
That could also create a challenge for Sharma’s ambitions to expand Xbox’s audience. Microsoft reportedly has around 100 million daily active Xbox users, but its new CEO wants to reach more than one billion people each day.
Convincing customers to spend up to $1,800 on a console could make that goal considerably harder, particularly with alternatives such as Valve’s Steam Machine competing for attention.
Hardware isn’t the only part of Xbox’s business that could be changing. Fortune also reports that Microsoft is considering a Game Pass overhaul, potentially introducing à la carte pricing with separate add-ons for console-only games, cloud gaming and multiplayer.
Meanwhile, further layoffs are reportedly planned for October, November and January as the company continues restructuring its gaming division.
Of course, the $1,800 figure remains an early projection rather than a confirmed retail price, and Microsoft still has roughly two years to finalise its plans. However, if the estimate holds, Project Helix could mark a major shift in what consumers are expected to pay for an Xbox console.
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