Next-gen Xbox price may reach $1,800, according to recent report.

The rising costs of gaming hardware and computer components are no secret, and the upcoming next-gen Xbox console, codenamed Project Helix, is expected to follow suit with a hefty price tag. Microsoft has branded Project Helix as a “very premium, very high-end” device, comparable to a high-performance gaming PC. However, a recent report reveals that internal estimates suggest the console could cost consumers between $1,200 and $1,800, potentially making it the priciest Xbox ever.

This price point would be a significant leap, especially considering it’s nearly double the current cost of a PlayStation 5 Pro. The report indicates that unless Microsoft opts to subsidize the console, it could be a tough sell for a brand that’s been struggling. Additionally, the anticipated release window for Project Helix has been pushed to before the holidays in 2028, later than many had hoped. With fluctuating component costs and Xbox CEO Asha Sharma hinting at rising expenses, the final price remains uncertain.

Microsoft has confirmed that Project Helix will support both Xbox and PC games, which could justify its high price as a powerful gaming PC alternative. Before this console arrives, there are plans for a next-gen Xbox handheld device to launch by the 2027 holiday season. The Xbox Ally handheld, released in October 2025, came in two versions: a $600 standard model and a $1,000 premium variant, which is said to be a precursor to what the next Xbox will offer.

However, the future of the handheld device appears to be in jeopardy, as there are reported disagreements between the Xbox and Windows teams regarding its software. The Windows team advocates for a streamlined version of Windows Home, while Sharma’s team prefers to develop proprietary software for optimal gaming performance. Tensions have escalated to the point where Xbox leadership has considered scrapping the handheld altogether.

Amidst these challenges, Xbox is undergoing a broader reset, which includes significant layoffs within the gaming division and a restructuring of Xbox Game Studios. New initiatives like Xbox XP and Xbox Labs are being introduced, focusing on generative AI in game development. Additionally, a major overhaul of Game Pass is in the works, moving away from a one-size-fits-all model to a more customizable subscription approach.

As Microsoft continues its efforts to revitalize the Xbox brand, further layoffs are anticipated in the coming months. Whether Sharma can steer the ship in a positive direction remains to be seen, especially with the daunting price of Project Helix on the horizon.