Microsoft projects a massive price tag for its next-generation hardware amid hardware struggles
Microsoft is facing internal projections that could see its next-generation Xbox console reach a staggering price point of up to $1,800 upon release, according to industry reports.
The tech giant is currently grappling with a struggling hardware division, where current-generation consoles have sold significantly fewer units than primary competitors in the gaming market.
These high estimated costs stem from surging global memory and storage prices, according to information published by dexerto.
Project Helix pricing and hardware costs
Fortune tech correspondent Sebastian Herrera reports that Microsoft has internally projected a consumer price ranging from $1,200 to $1,800 for the upcoming hardware platform known as Project Helix.
This potential retail price remains an unconfirmed manufacturer suggested retail price, meaning Microsoft could ultimately lower the final cost by choosing to subsidize the device before its commercial launch.
The company recently increased the price of the existing Xbox Series X in the United States due to rising component expenses, making the current generation significantly more expensive for consumers.
Game Pass overhaul and a la carte features
Alongside hardware pricing discussions, Xbox is reportedly planning a major structural overhaul of its popular Game Pass subscription service for future players.
Under the proposed changes, users would be able to choose features in an a la carte system, selecting specific add-ons for console-only games, cloud gaming access, and multiplayer.
This strategic shift comes as the division attempts to rebuild its financial margins, which currently hover around a modest 3 percent profitability rate globally.
Upcoming release timeline and handheld device
Industry projections indicate that Microsoft is actively targeting a holiday 2027 release window for its next-generation handheld gaming device.
Following the handheld rollout, the high-end Project Helix console is currently scheduled to launch during the holiday season in 2028.
Xbox leadership has previously described the next-gen Helix hardware as part of a broader family of devices designed to seamlessly play both traditional Xbox titles and PC games.
Frequently Asked Questions
How much will the next-gen Xbox cost?
Internal Microsoft projections suggest the next-generation Project Helix console could cost between $1,200 and $1,800, though this is not a final confirmed retail price.
When will the next-generation Xbox release?
Reports indicate that Microsoft is targeting a holiday 2028 release window for the Project Helix console, following a handheld device release in holiday 2027.
What is Project Helix?
Project Helix is a next-generation hardware system being developed by Microsoft and AMD to play both traditional Xbox games and PC titles.
What changes are coming to Xbox Game Pass?
Microsoft is considering a major Game Pass overhaul featuring an a la carte system where players can select console-only games, cloud gaming, and multiplayer add-ons.
