Microsoft is planning a significant hardware push in the coming years, according to a report from Fortune. The company is said to be aiming to release a next-generation Xbox handheld device in time for the 2027 holiday season, followed by a new home console in the 2028 holiday window.
Project Helix
The next-generation home console is reportedly being developed under the codename Project Helix. According to IGN, Microsoft expects the device to carry an unusually high retail price, with figures between $1,200 and $1,800 cited by TechPowerUp. That would place it well above the cost of current gaming consoles and even high-end gaming PCs in some configurations.
The Handheld Question
Details on the handheld remain limited. As noted by The Verge, the Fortune report does not clarify whether the device would be manufactured by Microsoft directly or by a third-party partner. Microsoft previously collaborated with Asus on an Xbox-branded handheld, and it is unclear whether a similar arrangement is being considered for this new device.
Kotaku noted that the handheld project is reportedly moving forward despite internal disagreements, describing ongoing turf battles within the company related to Windows and gaming hardware strategy.
Context
The portable gaming market has grown considerably, driven in large part by the success of Nintendo's Switch and a wave of Windows-based handheld PCs from manufacturers including Asus and Valve. Microsoft entering that space more directly would represent a meaningful shift in its hardware approach. The company has historically focused on living-room consoles, but the reported two-device roadmap suggests a broader platform ambition.
Neither the handheld nor Project Helix has been officially confirmed by Microsoft, and plans at this stage could still change before any public announcement.
