Xbox Set to Launch New Handheld Gaming Device in 2027 Amid Ongoing Windows Rivalry

Xbox CEO Asha Sharma is eyeing a new handheld gaming device set to launch in 2027, as revealed in a recent executive profile. This device is expected to succeed the current Xbox Ally X, which is produced by Asus, although there are still unresolved issues regarding the operating system.

Sharma aims to have this next-gen handheld ready for the 2027 holiday season, with plans for a new Xbox home console to follow in holiday 2028. It’s still uncertain whether the Project Helix lineup will encompass both devices, and while pricing details remain vague, there are reports suggesting that the Project Helix Xbox consoles could reach up to $1,800 without subsidies.

A particularly intriguing aspect of the article highlights an ongoing “turf battle” between the Xbox and Windows teams. Sharma’s team is pushing for software that is specifically optimized for gaming, while the Windows team prefers to base the handheld’s OS on a version of Windows Home. Tensions escalated to the point where a senior Xbox executive threatened to abandon the handheld project rather than compromise on the Windows build. Currently, Xbox is taking the lead on the operating system’s direction, although Sharma noted that collaboration between the two teams is still essential, stating, “We can’t build Helix on our own.”

While this OS conflict may seem like typical corporate squabbling, it underscores a significant challenge for Xbox: balancing its gaming ambitions with the demands of other divisions within Microsoft. This struggle has direct implications for the potential success of an Xbox handheld.

The existing Xbox Ally X operates with a user interface layered over Windows that can be quite temperamental. It lacks the smooth, optimized experience found on devices like the Steam Deck. Despite the Ally X’s advantages, the Windows-based OS remains a significant drawback, particularly regarding overall game performance. It appears that this debate is far from resolved within Microsoft.