Microsoft is set to launch an Xbox handheld in 2027, followed by a next-gen console in 2028.

Microsoft is gearing up to unveil a next-generation Xbox handheld device, aiming for a holiday release in 2027. This handheld will accompany the launch of the new console, codenamed Project Helix, which is expected to hit the market in late 2028, according to recent insights.

The specifics about the manufacturer of the handheld remain unclear—whether it will be produced by a company like Asus or developed in-house by Microsoft. Notably, Xbox has previously collaborated with Asus on the Xbox Ally devices, which featured a customized version of Windows 11 with an Xbox mode. Xbox CEO Asha Sharma has hinted that Project Helix could encompass a “family of devices,” indicating that the next Xbox console might not be limited to a single hardware unit.

Last year, Microsoft and AMD forged a strategic partnership to collaborate on a range of devices, including the upcoming console. This suggests that we might see a variety of Xbox devices powered by AMD’s latest chips.

However, the standard next-gen Xbox console may not be available until 2028. Reports indicate that Microsoft anticipates the price for the Project Helix console to range from $1,200 to $1,800, unless they decide to subsidize the hardware costs.

There have also been reports of tensions between Microsoft’s Windows and Xbox teams regarding the software that will run on the next-gen console. Given their history of disagreements over the past 25 years, it’s not surprising. Currently, it appears that Xbox is taking the lead on the software direction for Helix.

Additionally, there are whispers about significant changes coming to Xbox Game Pass. Recent rumors suggest that Microsoft is planning a revamp of Game Pass to introduce tiered options, similar to what streaming services like Netflix offer, with variations that may include ads. The new structure could incorporate add-ons for console-exclusive games, cloud gaming, and multiplayer features, enhancing the flexibility of Game Pass. However, the fate of day-one game releases and the overall pricing structure remains uncertain.

One of Sharma’s initial actions as Xbox CEO was to reverse the planned price increases for Game Pass, acknowledging internally that it had become too costly for players. The decision also included dropping future Call of Duty titles from day-one availability on Game Pass and reducing subscription prices.

Furthermore, there are reports that Sharma is preparing for a new wave of layoffs within Xbox this month, with additional cuts expected in November and January.