Microsoft Project Helix (Representational image)
Internal Microsoft estimates project that the next-generation Xbox could cost between $1,200 and $1,800, according to a report by Fortune. On top of the potential pricing spike, the system may not hit store shelves until 2028. Notably, at an $1,800 ceiling, the upcoming console would cost nearly four times as much as its predecessor did at launch. This comes as industry rumours suggest Sony’s anticipated PlayStation 6 could also climb upwards of $1,000.
Gamers must brace for expensive computing hardware over the next few years, specifically for flagship consoles.
New leadership and hardware realities
Sharma told Fortune that an official next-generation Xbox handheld is planned for release in time for the holiday 2027 shopping season. major technology manufacturers widely anticipate that industry-wide memory shortages will linger well into 2028 While launching the portable device in late 2027 gives global component volatility some breathing room. Microsoft will need to lock down final architectural choices and commit to massive component orders ahead of high-volume mass production – an operational milestone anticipated for late 2027 or early 2028.
The price and launch timeline come at a time when Microsoft’s gaming division is undergoing a period of major restructuring, marked by additional workforce layoffs and the appointment of Asha Sharma as the new chief executive officer (CEO) of Xbox. Sharma has laid out targets for the brand, including scaling Xbox into a billion-player-a-day platform. The persistent supply snags present a major hurdle for the upcoming home console, codenamed Xbox Helix. The surging costs of raw silicon, advanced memory modules and specialised fabrication account directly for the eye-watering estimates.