Next Xbox Could Cost Up to $1,800, Fortune Reports on Project Helix Pricing

The next Xbox price could land somewhere between $1,200 and $1,800, according to a new Fortune report on Microsoft's gaming division. That figure applies to Project Helix, the next generation console Microsoft has said will play both console and PC games, and it comes with an important catch: Fortune says the range holds "unless Microsoft decides to subsidize the cost."

The number spread quickly after Engadget picked it up on October 20 under a headline saying the next Xbox "might cost $1,800." For anyone planning a future console purchase, it is a striking figure. Here is what the report actually says, what it does not say, and how much weight to give it.

What Fortune reported about the next Xbox price

The figure appears in a long Fortune profile of Xbox CEO Asha Sharma, written by tech correspondent Sebastian Herrera and published on October 20, 2026. According to Fortune, "the price of the Helix console has internally been projected to cost consumers between $1,200 and $1,800, unless Microsoft decides to subsidize the cost."

Two words matter a lot there: "internally projected." This is not an announced price, and Fortune does not name the individual source for it. Microsoft has not commented on the figure in either the Fortune or Engadget coverage.

Fortune also points to why hardware is getting more expensive. The report says "higher hardware costs, fueled by memory chip shortages, are adding to the woes." Engadget connected the number to the same trend, citing what it called "the ongoing explosion in prices for RAM and other components driven by AI development."

The release timeline

Both outlets describe the same schedule. Fortune reports, citing people familiar with the strategy, that Sharma plans to release a new handheld by the 2027 holiday season and the next console by the 2028 holidays. So the full Helix console is still roughly two years away, which leaves plenty of room for the price to move.

What we know about Project Helix

Sharma revealed the Project Helix codename in a post on X in March 2026, as Engadget reported at the time. She said the system would "lead in performance" and "play both console and PC games." Engadget's latest story adds that Sharma described Helix in August as a "family" of devices, which fits with a handheld arriving first and a console after it.

Fortune's profile includes some behind the scenes detail too. It reports that the Xbox and Windows teams clashed over the software for Helix and that "Xbox is now largely controlling the direction of the operating system for the project." It also says engineering deadlines were "moved up by at least several months."

We have followed Microsoft's hardware plans closely this month, including the Xbox Nano controller and Microsoft's push to turn Xbox into a broader entertainment brand through its new XP division for film, TV and theme parks.

Why the price matters

A console at $1,200 or more would be a big break from how home consoles have traditionally been sold. Fortune's profile helps explain the pressure behind it.

According to the report, Xbox hardware margins sit "around 3%." Citing outside estimates, Fortune says current Xbox consoles have sold only a little over a third as many units as the PlayStation 5. Xbox has around 100 million daily active users, and Fortune says Sharma's goal is "more than 1 billion people a day."

Those numbers point to a company that may not want to keep selling hardware at thin or negative margins. At the same time, a very high sticker price could limit how many people buy in. That tension is exactly why the subsidy question matters. If Microsoft chooses to eat part of the cost, the final price could fall well below the projected range.

Engadget raised another possibility. It suggested the high figure might be "teased so that when the actual price is lower," Microsoft comes across looking generous. That is speculation, not reporting, but it is a reminder that early price chatter often shifts.

Competition from PC style hardware

Because Helix will play PC games, it will be compared with gaming PCs and with Valve's Steam Machine. Engadget noted that the Steam Machine is "currently cheaper" as an alternative. If Helix lands near the top of the reported range, buyers may weigh it directly against building or buying a gaming PC.

Game Pass and layoffs

The price was not the only news in Fortune's profile. The report says Xbox is planning a major Game Pass overhaul that would let players pick features à la carte, with add ons for console exclusive games, cloud gaming and multiplayer, all inside a tiered structure. Fortune again cites people familiar with the strategy.

Fortune also reports that Sharma has cut 1,868 people so far, as part of plans to reduce headcount by 3,200 over the next year. More rounds are planned for this month, November and January, according to Fortune's sources, "although layoff plans can change."

Who is Asha Sharma

Sharma took over Xbox in February 2026, when Satya Nadella appointed her to replace Phil Spencer. According to Fortune, she is 38 and earned a business degree from the University of Minnesota in 2011 before joining Microsoft's marketing department. She later worked at Meta as a vice president of product on messaging tools for Facebook and Instagram, then became chief operating officer at Instacart in 2021. Before the Xbox role, Fortune says she "led the product side of the group that built Microsoft's AI Foundry platform."

Fortune's headline describes her as a CEO who is not a gamer, and the profile frames her tenure as an effort to rethink the business rather than simply ship another box.

What this means for buyers

If you are deciding what to buy today, this report should not change much. The Helix console is reportedly planned for the 2028 holidays, and the handheld for late 2027. Current hardware will remain the main option for at least another two holiday seasons.

A few practical points:

1. Do not plan around $1,800 yet. It is an internal projection reported secondhand, with a subsidy caveat built in.
2. Watch component prices. Memory costs are a key driver, and both outlets tie the high estimate to them.
3. Keep an eye on Game Pass changes. An à la carte system could change what you pay each month more than the hardware price does.

For more on where game hardware is heading, see our coverage of retro style consoles like the Analogue Super NT+ and Mega SG+, and find all our device news on the gadgets page.

What to watch next

The next signals will likely come from Microsoft itself. Watch for any official comment on Helix pricing, details on the 2027 handheld, and the Game Pass restructuring. Fortune's reporting on further layoffs this month and in November and January is also worth tracking, since those cuts may hint at how Microsoft plans to fund the next generation.

Frequently asked questions

How much will the next Xbox cost?

Microsoft has not announced a price. Fortune reports that the Project Helix console has been internally projected at $1,200 to $1,800 unless Microsoft subsidizes it.

When is the next Xbox coming out?

According to Fortune, Microsoft plans a next generation handheld by the 2027 holiday season and the next console by the 2028 holidays.

Will the next Xbox play PC games?

Yes. Xbox CEO Asha Sharma said in March 2026 that Project Helix will play both console and PC games.

Why would the next Xbox be so expensive?

Fortune and Engadget both point to rising memory and component costs. Fortune also reports Xbox hardware margins of around 3%, which leaves little room to absorb those costs.