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A recent report from Fortune indicates that Microsoft is developing a new console under the project name Project Helix. This hardware could potentially launch in 2028 with a price point ranging from $1,200 to $1,800, depending on whether the company decides to subsidize the manufacturing costs.
The high projected cost is attributed to ongoing shortages of AI-related components and memory. While Microsoft previously absorbed losses of up to $200 per unit during the 2020 launch of the Xbox Series X and S, the current market environment driven by AI demand may influence future pricing strategies.
Beyond the console, Microsoft is reportedly planning a next-generation handheld device expected by the end of 2027. Internal disagreements have surfaced regarding the software for this handheld, with the Windows team favoring a modified version of Windows Home, while the Xbox team prefers dedicated software.
An unnamed senior executive reportedly threatened to cancel the handheld project if forced to use Windows. Currently, the Xbox team is largely directing the development of this family of devices, which aims to serve a market segment increasingly dominated by wealthier households.
