Microsoft Plans Project Helix Console and 2027 Handheld
Microsoft plans to launch a next-generation Xbox handheld in 2027 and a Project Helix home console in 2028 amid rising hardware costs and workforce reductions.
Microsoft is developing a next-generation gaming ecosystem codenamed Project Helix, which consists of a family of devices rather than a single console. According to reports from Fortune, Asha Sharma, CEO of Xbox, plans to launch a dedicated handheld device by the 2027 holiday season, followed by a next-generation home console in late 2028. Internal projections suggest the Project Helix console could cost between $1,200 and $1,800 unless Microsoft chooses to subsidize the hardware, a price hike attributed to an AI-driven shortage of memory and storage components.
Development has been marked by internal friction between the Xbox and Windows teams. The Xbox team successfully pushed for a custom gaming operating system for the new hardware over a trimmed-down version of Windows Home. To support this hardware rollout, Microsoft is partnering with AMD for a strategic multi-year chip development agreement.
Facing a severe industry hardware crisis and slower-than-expected growth for Game Pass, Sharma has stated the company must "reset Xbox." This restructuring includes planning further rounds of layoffs through January 2027, following a previous cut of 3,200 employees. Microsoft is also exploring a more flexible Game Pass structure, including potential ad-supported tiers and à la carte add-ons for multiplayer and cloud gaming. While rumors of a spinoff have circulated, Microsoft commercial business CEO Judson Althoff denied intentions to sell the business.
