Microsoft’s upcoming Xbox, Project Helix, is set to enter alpha testing in 2027.

At the 2026 Game Developers Conference, Jason Ronald, Microsoft’s VP of Next Generation, shared exciting insights about the future of Xbox. The upcoming console, codenamed Project Helix, will feature a custom AMD chip that promises a significant boost in ray tracing performance, including capabilities for path tracing.

Additionally, Project Helix will incorporate an advanced version of AMD’s FSR upscaling technology, which utilizes machine learning to generate new frames, enhancing the overall smoothness of gameplay. AMD executive Jack Hyunh referred to this as FSR Diamond, emphasizing its native optimization for Project Helix and its deep integration into the Game Development Kit.

However, gamers will need to wait a bit longer for this next-gen console, as Ronald announced that Microsoft plans to distribute “alpha versions” of Project Helix to developers in 2027.

Ronald also highlighted the growing synergy between Xbox and Windows, noting that Project Helix will support PC games. “PC is becoming an increasingly important part of Xbox. We’re bringing the best of Xbox to Windows itself,” he stated. Starting in April, Microsoft will roll out the Xbox mode, initially launched with the Xbox Ally handheld, to select Windows computers. This will include Advanced Shader Delivery, which allows players to download precompiled shaders alongside games or updates, eliminating wait times at launch.

The team has been working diligently to ensure that the Xbox mode maintains a distinct Xbox feel, providing a seamless experience across devices and cloud gaming. Ronald pointed out that gamers typically juggle 3-5 games at once, and the goal is to allow players to easily switch between console, PC, and cloud.

Outside the keynote, it was clear that Microsoft aims to simplify development for game creators, encouraging them to build once for both Windows and Xbox. Ronald explained that “the vast majority of code that your game runs on Xbox is the exact same code that runs on other platforms.” While he didn’t guarantee that all games would follow this model, he did mention that players wouldn’t need to purchase games multiple times. The existing Xbox Play Anywhere program allows gamers to buy a title once and play it on any screen, with over 1,500 titles currently available.

In celebration of Xbox’s 25th anniversary, the game preservation team will also re-release a selection of classic Xbox titles through its Game Preservation program. Ronald expressed a strong commitment to preserving gaming history, hinting that “some of our most iconic first-party franchises are returning this year.”

Could this mean classic Xbox games are making their way to PC? An official summary suggested as much, stating, “As part of our 25th anniversary later this year, we’ll be rolling out new ways to play some of the most iconic games from our past.” When asked for specifics, Ronald remained tight-lipped, indicating that more information would be revealed alongside Microsoft’s anniversary plans.

This announcement follows the reveal of Project Helix, which is set to support both console and PC games. The news was shared by Asha Sharma, the new head of Xbox, who took over in February. With former Xbox leader Phil Spencer retiring and Sarah Bond stepping down, Sharma has promised a renewed focus on Xbox, starting with the console, and has stated that Helix will “lead in performance.” This week, she also showcased a picture of the original Xbox prototype at the GDC Festival of Gaming.