Project Helix Xbox: 2028 Release and Projected $1,200-$1,800 Price
“We’re here to be the No. 1 entertainment company,” Xbox CEO Asha Sharma told Fortune, outlining an ambitious expansion strategy for Microsoft’s gaming division as internal projections for the next-generation Project Helix console point to a retail price between $1,200 and $1,800. That hardware, slated for a holiday 2028 release, arrives alongside plans for a new portable device targeted for the final quarter of 2027, according to a report by Fortune.
Rising Component Prices Push Project Helix Costs Higher
Project Helix faces significant cost obstacles driven by soaring memory and storage component prices. Xbox CEO Asha Sharma has identified affordability as a primary challenge for the upcoming console as data center buildouts and the artificial intelligence boom consume available chip supplies. Without Microsoft subsidizing the hardware, internal estimates place the price tag between $1,200 and $1,800. Component manufacturers project that RAM prices will continue climbing through 2027 and 2028, exacerbating the financial pressures on living room gaming devices. Microsoft has traditionally subsidized console sales more aggressively than Nintendo or Sony—recouping investments through accessory sales and storefront commissions—but the modest install base of current-generation Xbox consoles has compressed those returns. Third-party estimates cited by Fortune indicate that current-generation Xbox systems have sold roughly a third as many units as the PlayStation 5.
Asha Sharma Leads Xbox Amid Low Profit Margins
Asha Sharma assumed leadership of the Xbox division in February following the departure of Phil Spencer. The transition coincides with a broader financial restructuring under Microsoft, which generated approximately $21 billion in revenue from gaming but faced profit margins hovering around 3%, according to Fortune. That profit margin sits significantly below competitors, placing intense pressure on the division following Microsoft’s $69 billion acquisition of Activision Blizzard in 2023. Current and former employees told Fortune that previous strategies heavily prioritized Game Pass expansions and publisher acquisitions while neglecting the core hardware business. To reverse course, Sharma has initiated substantial staff reductions, eliminating 1,868 positions out of a planned cut of 3,200 roles, with further layoffs anticipated. In executive sessions at Building 87, a secure laboratory on the Microsoft campus in Redmond, Sharma has collaborated with designers including Carl Ledbetter to review hardware prototypes and strategy.
Microsoft Plans Handheld Device Before Project Helix Launch
Before Project Helix reaches the market in late 2028, Microsoft intends to introduce a new generation handheld gaming device between September and December 2027, Fortune reported. This portable system forms part of an effort to broaden the Xbox footprint beyond traditional home consoles. Alongside hardware developments, Sharma’s internal restructuring directs greater financial backing toward marquee franchises while scaling back investments in smaller studios. Despite the contraction in headcount, Sharma has established a target to lift daily active users from approximately 100 million past one billion. Describing her leadership style, Sharma told Fortune that curiosity outweighs confidence in driving organizational problem-solving. “If you have confidence, you might be right; if you’re curious, you’ll find a better way,” Sharma said.