Microsoft plans a new handheld for late 2027 and a high-cost console for 2028, alongside major changes to its Game Pass subscription tiers.
Key points
- An Xbox handheld device is slated for the 2027 holiday season.
- The next-generation console, Project Helix, is projected for late 2028.
- Game Pass is undergoing an overhaul with potential ad-supported tiers.
Microsoft is preparing to release new gaming hardware and alter its subscription service. Reports indicate a handheld device will launch in 2027, followed by a next-generation console in 2028, while Game Pass pricing and structure may shift significantly.
What happened
According to a Fortune report, Microsoft plans to introduce an Xbox next-generation handheld device during the 2027 holiday season. The subsequent next-generation console, known internally as Project Helix, is scheduled to arrive in the holidays of 2028. It remains unclear whether Microsoft will manufacture the handheld itself or partner with a company like Asus, which previously collaborated on the Xbox Ally devices.
Xbox CEO Asha Sharma has described Project Helix as a "family of devices," implying the console strategy may encompass multiple hardware options rather than a single unit. Microsoft and AMD have a strategic partnership for a portfolio of devices, likely including chips for this new hardware. Fortune reports that the Project Helix console could cost between $1,200 and $1,800 if Microsoft does not subsidize the price.
Why it matters
This shift signals a move toward flexible, multi-device gaming ecosystems. Companies are increasingly decoupling hardware from specific form factors to reach broader audiences. High upfront costs for consoles often drive subscriptions, making service stability critical. Consumers must understand that hardware releases may stagger over years, requiring patience. Subscription models are evolving to include ad-supported tiers, mirroring streaming services. This change affects long-term value, as users may trade convenience for lower monthly fees. Understanding these business models helps buyers anticipate total ownership costs beyond the initial purchase price.
The fix
- Review your current Game Pass subscription benefits before any tier changes.
- Monitor official Microsoft announcements for confirmed hardware release dates.
- Assess your budget for potential high-cost console purchases in 2028.
- Check if existing devices will remain compatible with new services.
Why it matters
When companies restructure hardware roadmaps, they often test consumer price sensitivity. A delayed console launch allows time for software refinement and market assessment. High hardware costs can indicate reduced subsidies, shifting financial burden to users. Subscription overhauls typically aim to segment users by usage intensity. Users should evaluate whether new tiers match their gaming habits. This approach helps manage expectations around feature availability and pricing stability over time.
What to do and how to stay safe: Microsoft
- Verify official release dates from Microsoft before making purchase plans.
- Calculate the total cost of ownership for new hardware and subscriptions.
- Check if your current games and peripherals will work with new devices.
- Review subscription terms for potential changes to ad-supported tiers.
Step-by-step guide: What is password policies and how they protect systems
General security guidance from the Crypt Weekly newsroom. It is not confirmed advice from the organisations named in this story.
Frequently asked questions
When will the new Xbox handheld be released?
Microsoft reportedly plans to launch the handheld device in the 2027 holiday season.
How much will the next Xbox console cost?
The Project Helix console could cost between $1,200 and $1,800 without subsidies.
What changes are coming to Game Pass?
Xbox is looking at tiers with or without ads, plus add-ons for specific features.
