Microsoft’s next-gen Xbox hardware lineup is beginning to come into focus. According to a new report from Fortune, the company is gearing up to ship new hardware in the form of a handheld in 2027, followed by a full-blown console in 2028.
It’s unclear if the handheld project is a first party Xbox device, or a third-party device designed and manufactured by an OEM partner like ASUS and the ROG Ally X. The console is expected to be first-party, and is likely to run a specialized version of Windows.
The report claims that Xbox and Windows have been at odds about how the OS should run on Project Helix. Windows leaders wanted the consoles to run a modified version of Windows desktop, but Xbox leaders wanted a more boutique OS experience designed for gaming.
“Tensions ran high enough that a senior Xbox executive threatened to scrap the handheld project rather than adopt the Windows build … Xbox is now largely controlling the direction of the operating system for the project” Fortune claims.
Windows already powers the current Xbox Series consoles, as well as Xbox One. It’s a modified version of the OS that the Xbox team has customized, built on top of the Windows OS core that is developed by the Windows team. It sounds like the Xbox team has decided to maintain this approach with Project Helix consoles.
Alarmingly, Fortune claims that Microsoft is currently expecting the next-gen Xbox console to cost somewhere between $1,200 and $1,800, making it the most expensive gaming console ever. It’s possible that Microsoft may choose to subsidize the cost, which would bring it closer to $1,000, but nothing is confirmed.
Of course, these rumors are unconfirmed. Plans could change and schedules could slip, so nothing is set in stone until Microsoft is ready to formalize its plans officially. For now, we know that Project Helix is still in development, with first devkits expected to debut in early 2027.
Let us know in the comments what you think about Project Helix so far.
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