Microsoft reportedly plans Xbox handheld in 2027, next-gen console in 2028

Microsoft is reportedly planning to launch an Xbox “next-generation handheld device” for the holiday season of 2027. The Xbox next-gen console, codename Project Helix, would then launch in the holidays of 2028, according to a new report from Fortune.

The report doesn’t make it clear whether the handheld would be made by a manufacturer like Asus, or by Microsoft itself. Xbox teamed up with Asus for its Xbox Ally devices, which ran a modified version of Windows 11 with an Xbox mode enabled. Xbox CEO Asha Sharma has also described Project Helix as a “family of devices,” suggesting that Microsoft’s next Xbox console may not be just one piece of hardware.

Last year Microsoft and AMD announced a “strategic multi-year partnership” to work together on “a portfolio of devices,” including Microsoft’s next-generation console. It seems increasingly likely that this will include a range of “Xbox” devices, running on AMD’s new chips.

The regular next-generation Xbox console may not arrive until 2028, though. Fortune reports that Microsoft is currently projecting that its Xbox Project Helix console may cost “between $1,200 to $1,800” for consumers, unless Microsoft is willing to subsidize the cost of the hardware.

Microsoft’s Windows and Xbox teams have also reportedly clashed over what software will power the next-gen Xbox. That’s not terribly surprising given the two teams have clashed multiple times over the past 25 years of Xbox. It sounds like Xbox is now controlling the direction of the software on Helix, though.

The report also touches on the rumored changes to Xbox Game Pass. Last month rumors emerged that Microsoft was working on an overhaul to Game Pass that will create tiers with or without ads, much like Netflix and other streaming services. Fortune says Xbox is looking at including add-ons for console-only games, cloud gaming, and multiplayer. This would make Game Pass a lot more flexible, but it’s not clear what happens to day one games and the overall price of Game Pass.

One of Sharma’s first big moves as Xbox CEO was reversing the Game Pass price hikes, after she admitted internally that “Game Pass has become too expensive for players.” Xbox dropped future Call of Duty titles from day one on Game Pass, and brought prices back down for its subscription service.

Fortune also reports that Sharma is planning a fresh round of Xbox layoffs this month, followed by more in November and January.

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