Skip to content
Tuesday, October 20, 2026AboutContactRSS
Tech News

Microsoft Plans 2027 Xbox Handheld, 2028 Project Helix Console

Microsoft reportedly targets late 2027 for a next-gen handheld and late 2028 for the Project Helix console, with potential high costs and software shifts.

Illustration: A sleek, rectangular gaming handheld rests on a dark wooden table next to a compact, angular game console.
AI-generated illustration: Threat Times

Key points

  • Microsoft reportedly plans to launch an Xbox next-generation handheld device for the holiday season of 2027.
  • The subsequent next-gen console, codenamed Project Helix, is projected to release during the holidays of 2028.
  • The Project Helix console could cost between $1,200 and $1,800 if Microsoft does not subsidize the hardware.

Microsoft reportedly intends to introduce a next-generation Xbox handheld device during the holiday shopping season of 2027. This portable hardware would precede the launch of the next-generation console, known as Project Helix, which is scheduled for the holidays of 2028, according to a report from Fortune.

The reported timeline suggests a staggered approach to Microsoft’s gaming hardware strategy. The handheld device arrives first, potentially establishing a foothold in the portable market before the main console debuts a year later. Fortune’s reporting indicates that Microsoft is positioning these devices as part of a broader ecosystem rather than isolated products.

Hardware Strategy and Potential Costs

The report from Fortune does not clarify whether Microsoft will manufacture the handheld itself or partner with an external hardware maker. Previous collaborations include the Xbox Ally devices, which were built by Asus and ran a modified version of Windows 11 with an integrated Xbox mode. This partnership model could be repeated for the upcoming handheld.

Project Helix, the next-generation console, faces significant cost uncertainties. Fortune reports that the console could retail between $1,200 and $1,800. This high price point assumes Microsoft will not subsidize the hardware costs. Such a premium price would mark a substantial increase from current console pricing models, unless the company absorbs manufacturing expenses to keep consumer prices lower.

Xbox CEO Asha Sharma has described Project Helix as a “family of devices.” This phrasing implies that the next generation of Xbox hardware will not consist of a single console but rather a range of products. A strategic multi-year partnership announced last year between Microsoft and AMD supports this view, with the two companies working on a portfolio of devices powered by AMD’s new chips.

Software Conflicts and Game Pass Changes

Internal dynamics at Microsoft may influence the software direction of Project Helix. Reports indicate clashes between the Windows and Xbox teams over which software will power the next-generation console. Historically, these teams have disagreed on strategy over the past 25 years. Current reports suggest the Xbox team is now controlling the software direction for Helix.

Microsoft is also reportedly overhauling the Xbox Game Pass subscription service. Rumors from last month suggested the introduction of ad-supported tiers, similar to models used by Netflix and other streaming platforms. Fortune adds that Xbox is considering add-ons for specific features, including console-only games, cloud gaming, and multiplayer access.

These changes aim to make Game Pass more flexible but raise questions about pricing and content inclusion. CEO Asha Sharma previously reversed price hikes after acknowledging internally that Game Pass had become too expensive for players. This led to the removal of future Call of Duty titles from day-one releases and a reduction in subscription prices. The impact of these new tiers on day-one game availability and overall costs remains unclear.

What should you do?

Security and technology professionals should monitor official Microsoft announcements for confirmation of these hardware roadmaps. The potential high cost of Project Helix may influence enterprise or consumer procurement budgets. Changes to Game Pass tiers could affect how organizations manage subscription costs for employees or users.

What to do and how to stay safe: Microsoft

  • Monitor official Microsoft channels for confirmed launch dates and pricing of the 2027 handheld and 2028 console.
  • Evaluate current hardware refresh cycles to determine if the staggered release impacts procurement timelines.
  • Review Game Pass subscription terms for potential tier changes that could affect access to cloud gaming or multiplayer features.
  • Track the Microsoft-AMD partnership developments for insights into the technical specifications of the new device portfolio.

Step-by-step guide: Mobile Device Security: How to Protect Data Beyond Passwords

General security guidance from the Threat Times newsroom. It is not confirmed advice from the organisations named in this story.

Frequently asked questions

When is Microsoft planning to release the next Xbox handheld?

Microsoft reportedly plans to launch the next-generation Xbox handheld device for the holiday season of 2027.

What is the projected cost of the Project Helix console?

The Project Helix console could cost between $1,200 and $1,800 if Microsoft does not subsidize the hardware costs.

Who is leading the software direction for Project Helix?

Reports suggest that the Xbox team is currently controlling the software direction for Project Helix, despite past clashes with the Windows team.

Sources

  1. The Verge
MicrosoftXboxProject HelixAMDGame Pass
Related articles