XBOX Project Helix Could Cost $1,800 as Microsoft Changes Strategy

The next generation of gaming consoles could cost more as Microsoft and Sony face rising hardware manufacturing costs. Microsoft's upcoming Project Helix is reportedly expected to cost between $1,200 and $1,800, while the PlayStation 6 could also face manufacturing costs close to those of Microsoft's next-generation system.

In a profile published by Fortune, newly appointed XBOX CEO Asha Sharma outlined a different future for the brand. The report includes internal projections detailing Microsoft's next-generation hardware lineup, including a dedicated XBOX handheld arriving in late 2027 and the next-generation flagship home console, codenamed Project Helix, releasing in late 2028.

Microsoft Project Helix Could Cost Between $1,200 and $1,800

Internal pricing estimates reportedly place Project Helix between $1,200 and $1,800. If these estimates prove accurate, Microsoft's next console could cost far more than previous XBOX systems. Switching to PlayStation might not provide much relief, either. Industry supply chain reports suggest Sony's PlayStation 6 bill of materials is currently only $200 lower than XBOX Project Helix's.

This raises questions about whether Microsoft and Sony are facing a silicon crisis that could push the traditional $500 home console out of reach. Helix isn't simply an Xbox Series X2. Microsoft is designing it as a bridge between PC gaming and console gaming. The system is expected to run native PC storefronts alongside standard XBOX games.

That approach requires processing power, customized silicon, and large amounts of high-bandwidth memory. Historically, Microsoft and Sony relied on the loss-leader strategy. They sold home consoles at a loss, sometimes absorbing $100 or more per unit, and recovered the money through digital game sales and subscriptions.

That brings us back to the PlayStation 6. Industry insiders reportedly estimate that Sony's internal bill of materials for the console is only $200 lower than Microsoft's Helix. When manufacturing a machine approaches $1,000, selling it for $500 is no longer a viable business model. It could put significant financial pressure on the companies behind these systems.

XBOX Is Planning a Handheld Before Project Helix

An $1,800 home console would be out of reach for much of the mainstream market, so Microsoft isn't putting all its eggs in one basket. Under Asha Sharma, Xbox is reportedly preparing a family of devices that will roll out over two years. The first device is a dedicated XBOX handheld planned for late 2027. Microsoft is reportedly developing a handheld PC hybrid designed to run PC Game Pass and XBOX OS locally.

By entering the portable market first, XBOX could provide a more affordable entry point for households before introducing its higher-priced home system. This would let Microsoft reach players who aren't ready to spend thousands of dollars on a gaming machine. Project Helix is expected to follow during the 2028 holiday season.

Microsoft is positioning it as an enthusiast product, offering a prebuilt gaming system for players who want PC-level graphics in a TV-ready form factor. To understand why XBOX is taking this approach, we need to look at the leadership behind the strategy. Asha Sharma became XBOX CEO during a difficult period in Microsoft's history.

The entire gaming industry now faces a question about the future of traditional consoles.

For $1,800, a gamer could build a high-end custom gaming PC capable of playing games from Steam, the Epic Games Store, and Xbox without paying a monthly online multiplayer subscription fee. If Microsoft and Sony push hardware prices beyond $1,000, consoles could lose their biggest historical advantage: accessibility.

That could leave the middle ground for home consoles increasingly difficult to maintain. Between an Xbox handheld planned for 2027, a potential $1,800 Project Helix console, and a PlayStation 6 that may not cost much less to manufacture, next-generation gaming could cost more than previous generations. Of course, nobody is saying that you have to buy a next-generation console for almost $2,000. 

Waiting could give hardware costs more time to settle and the next generation of systems time to establish its place in the market. The question is whether players will accept the reported prices for Microsoft's next-generation hardware. Would you pay $1,200 to $1,800 for an XBOX if it could run PC games natively, or would you skip the home console and choose the 2027 handheld instead?