Microsoft is said to be pushing plans to unveil a handheld Xbox in 2027 and release a next-generation console the following year. Attention is also focused on forecasts that the next console could cost as much as $1,800.

The Verge reported on Oct. 20 that Microsoft plans to release a next-generation handheld game device during the year-end shopping season in 2027 and a next-generation console codenamed Project Helix in late 2028. It said Fortune reported this, citing internal sources.

It has not been confirmed whether Microsoft will produce the handheld device itself or work with external manufacturers such as Asus. Microsoft previously worked with Asus to introduce a Windows 11-based handheld game device, the ROG Xbox Ally.

The next-generation Xbox may consist of multiple devices rather than a single product. Asha Sharma (아샤 샤르마), Xbox chief executive officer, described Project Helix as a family of devices, and Microsoft is pursuing a long-term partnership with AMD to develop next-generation game hardware.

Pricing is also in focus. Fortune said Microsoft internally expects Helix to have a consumer price of $1,200 to $1,800. It added that the actual selling price could be lower if Microsoft subsidises part of the hardware cost.

The report said there were disagreements between the Windows and Xbox organisations during operating system development. The Windows side preferred a lightweight Windows operating system, while the Xbox side argued for in-house software optimised for game performance. Xbox is now said to be leading the development direction.

A revamp of the Game Pass game subscription service is also being reviewed. The option would split plans based on whether they include advertising and offer console games, cloud games and multiplayer features as add-on options.

Microsoft recently lowered Game Pass prices and decided to stop offering new Call of Duty releases on their launch day. It is also said to be pushing additional workforce reductions.

The launch timing and pricing of the next-generation devices, as well as the Game Pass revamp, have not been officially finalised. Attention is on whether Xbox can restore competitiveness in both hardware and subscription services.