Microsoft’s Gaming Future: Xbox Handheld in 2027 and Next-Gen Console in 2028

Microsoft’s Plans for Next-Generation Xbox Devices

According to a recent report from Fortune, Microsoft is gearing up to release an Xbox “next-generation handheld device” in time for the 2027 holiday season. This device, codenamed Project Helix, will be followed by the launch of the Xbox next-gen console during the 2028 holiday season.

The report does not specify whether the handheld device will be manufactured by companies like Asus or by Microsoft itself. In the past, Xbox collaborated with Asus for the Xbox Ally devices, which featured a modified version of Windows 11 with an Xbox mode. Xbox CEO Asha Sharma has hinted at Project Helix being part of a “family of devices,” suggesting that the next Xbox console may not be a standalone piece of hardware.

Microsoft and AMD recently announced a strategic partnership to develop a range of devices, including the next-generation Xbox console. It appears that this partnership will result in a variety of “Xbox” devices powered by AMD’s new chips.

While the standard next-generation Xbox console is expected to arrive in 2028, reports indicate that Microsoft is projecting a price range of “between $1,200 to $1,800” for the Xbox Project Helix console, unless Microsoft decides to subsidize the cost.

There have been reports of conflicts between Microsoft’s Windows and Xbox teams regarding the software that will run on the next-gen Xbox. Despite past disagreements, it seems that Xbox is now taking the lead in determining the software direction for Helix.

Rumors suggest that Xbox Game Pass may undergo significant changes, including the introduction of tiered subscriptions with or without ads, similar to streaming services like Netflix. Xbox is considering add-ons for console-only games, cloud gaming, and multiplayer to enhance the flexibility of Game Pass.

Recently, Xbox CEO Asha Sharma made the decision to reverse Game Pass price increases, acknowledging that the service had become too expensive for players. As a result, future Call of Duty titles were removed from day one availability on Game Pass, and subscription prices were lowered.

Additionally, reports from Fortune suggest that Sharma is planning a series of layoffs at Xbox, with the first round expected this month followed by more in November and January.