Microsoft is preparing a multi-phase hardware rollout over the next two years, according to reports. The company plans to introduce a next-generation handheld device during the 2027 holiday season, with details remaining unclear about whether the device will be manufactured internally or through a partnership with an external manufacturer such as Asus. This would be followed by the launch of Project Helix, Microsoft’s next-generation console, during the 2028 holiday season.
Xbox leadership has characterized the upcoming hardware strategy as a “family of devices” rather than a single product, suggesting a diversified approach to the market. The company’s partnership with AMD, announced last year as a multi-year strategic collaboration, is expected to underpin the technological foundation for these new devices. Manufacturing details and exact specifications for the handheld remain uncertain at this stage.
Cost projections for Project Helix range from $1,200 to $1,800 before any potential subsidization by Microsoft, according to current internal estimates. The company is also reportedly reassessing its Game Pass subscription service, with potential restructuring to include tiered offerings with and without advertisements, along with add-ons for console-exclusive games, cloud gaming, and multiplayer features. These changes aim to provide greater flexibility in subscription options, though specifics regarding day-one game availability and pricing remain undetermined.
Internally, Microsoft’s Windows and Xbox divisions have experienced disagreements regarding software architecture for the next-generation console, though Xbox leadership currently maintains control over software direction for Project Helix. Additionally, Xbox leadership is planning workforce reductions this month, with additional layoffs anticipated in November and January.
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