Xbox CEO Asha Sharma wants to release a new handheld gaming device in 2027. That’s according to a new profile of the executive in Fortune. The plan suggests a successor to the existing Xbox Ally X manufactured by Asus, though fights over the OS apparently remain an ongoing issue.
Fortune states that Sharma wants to release a “next-generation handheld device by the 2027 holiday season,” followed by the next Xbox home console in holiday 2028. Whether the Project Helix “family of devices” includes both is unclear, as is the pricing, though Fortune also reported that Project Helix Xbox consoles could cost as much as $1,800 without subsidies.
Perhaps the more interesting tidbit from the article, however, is about an ongoing “turf battle” between the Xbox and Windows teams. Sharma’s team wants software optimized for gaming. The Windows team wants the handheld to use a version of Windows Home as the basis for its OS. Here’s the excerpt:
Tensions ran high enough that a senior Xbox executive threatened to scrap the handheld project rather than adopt the Windows build, according to people briefed on the clash. Xbox is now largely controlling the direction of the operating system for the project, though Sharma emphasized the two still collaborate closely, saying, ‘We can’t build Helix on our own.’
This OS fight might sound like corporate infighting that’s neither here nor there, but it gets at the heart of one of Xbox’s ongoing struggles, which is the degree to which it is saddled with the expectations and needs of other business divisions within Microsoft. It also has particular consequences for the promise of an Xbox handheld.
The current Xbox Ally X uses a UI layer on top of Windows that’s extremely finicky. It’s nowhere near as slick, streamlined, or optimized as the presentation you get on a device like the Steam Deck. While the Ally X has plenty of advantages, the Windows-based OS remains a huge drawback, including when it comes to overall game performance. It doesn’t sound like that’s a debate that’s been entirely settled within Microsoft, yet.