Microsoft's next Xbox console, Project Helix, has internally been projected to cost consumers between $1,200 and $1,800 unless Microsoft subsidises it, according to Fortune.
The report, a profile of Xbox CEO Asha Sharma by Tech Correspondent Sebastian Herrera, said Sharma plans to release a next-generation handheld by the 2027 holiday season and the next console by the holidays in 2028. Fortune also said engineering deadlines for Helix have been moved up by at least several months, citing people familiar with the matter.
Game Pass and layoffs
According to Fortune, Xbox is planning a major overhaul of Game Pass, its Netflix-style subscription service. Players would choose features à la carte, with add-ons for console-only games, cloud gaming and multiplayer, inside a tiered structure.
Fortune reported that Sharma has cut 1,868 people so far as part of plans to reduce headcount by 3,200 over the next year. Further rounds of layoffs are planned for this month, November and January, people familiar with the plans told the publication, though it noted that layoff plans can change.
Xbox and Windows clash over Helix
The report also described a clash between the Xbox and Windows teams over the software for Helix hardware. Windows leaders wanted an upcoming handheld to use a trimmed-down version of Windows Home, while Sharma's team wanted to build its own software. A senior Xbox executive threatened to scrap the handheld rather than adopt the Windows build, according to people briefed on the clash, Fortune said.
Xbox now largely controls the direction of the operating system, though Sharma stressed that the two teams still work closely. "We can't build Helix on our own," she told Fortune. Microsoft has not publicly commented on the price projections or the layoff plans.
