According to recent reports Project Helix has been projected internally at between 1,200 and 1,800 dollars to consumers, unless Microsoft decides to slash or absorb the cost.
Of course these are subject to changes, but they’re Microsoft’s own, until now no console has ever launched anywhere near 1,200 dollars, even adjusted for inflation.
Project Helix is expected and will launch a next-generation handheld for holiday 2027, the console for holiday 2028.
Why subsidy might not be available
The math is same across every console, sell the console at a loss, make it back on software and subscriptions.
According to reports Xbox’s margin at roughly 3%, with revenue down 7% to 21.8 billion dollars. There isn’t much to eat the loss with, and the CEO Sharma has spent the year saying so, telling that the industry “needs to start to innovate on affordability and efficiency” because of the component crisis.
There has been recent price hikes. The Series X launched at 499 and now costs 799.99 in the US. Microsoft has said console storage and memory prices have increased more than 2.5 times, and expects another doubling by autumn 2027. Memory makers expect supply to tighten further through 2027 and 2028, which is precisely when Helix is meant to ship. Which is obviously bad news.
The billion-player problem
Sharma's goal was a billion players.
An Xbox starting at 1,200 dollars does not get you there, no console can get you there. Microsoft is weighing an a la carte Game Pass, with separate add-ons for console-only games, cloud gaming and multiplayer.
The fight over the operating system
The reports state there was big discussions.
Windows leadership wanted a downscaled version of Windows Home. Sharma’s team wanted its own software for better gaming performance. Some reports claim that it escalated far enough that a senior Xbox executive threatened to scrap the handheld entirely rather than ship the Windows build.
Xbox now appears to have the OS. Sharma’s framing explains it “We can’t build Helix on our own.”
What else is in the profile
1,868 of the planned 3,200 roles have gone until now. More cuts are expected this month, with further rounds planned for November and January.
Investment is being concentrated on marquee franchises and pulled back from smaller studios.
Sharma took over in February following Phil Spencer’s retirement. Her goal, as she put it to Fortune, is making Xbox the number one entertainment company.
More:Xbox's Grim Quarter Puts Hard Numbers to Sharma's Diagnosis
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