Microsoft plans to launch its next-generation Xbox, codenamed Helix, in time for the 2028 holiday season, according to a Fortune report. The console could be priced between $1,200 and $1,800 unless Microsoft subsidizes it.
The high cost is tied to rising memory prices. AI data centers have taken up most memory and storage production, pushing DRAM and NAND costs up five times. The Xbox Series X launched in 2020 at $500, and Microsoft has already raised its price several times.
A handheld Xbox may come sooner, possibly by the 2027 holiday season. Unlike the Asus-made ROG Xbox Ally, which runs on Windows, it would likely play digital Xbox console games.
The report also says Xbox CEO Asha Sharma, who replaced Phil Spencer earlier this year, wants to turn Game Pass into an à la carte service where users pick specific add-ons and online features. She has said she wants to make the service more affordable.
Sony faces similar pressure. The PlayStation 5 Pro now sells for $900, and leakers say the PlayStation 6’s bill of materials is nearing $1,000. Sony CEO Hiroki Totoki said the PS6 launch window is undecided, but the company’s plan to stop making physical discs for new games in January 2028 points to a launch that year.
Microsoft has confirmed developers will receive Helix development kits next year. Both Helix and the PS6 are expected to use AMD’s Zen 6 CPU and RDNA 5 GPU architectures. Leaks suggest the PS6 will have eight CPU cores and 40 to 48 GPU compute units, while Helix will have 10 cores and 20 threads. Helix will also support PC games and could have a 40% edge over the PS6 in some rendering tasks.