Microsoft is reportedly preparing further cuts across Xbox, with additional rounds of layoffs planned for October, November, and January. At the same time, internal estimates place the price of the next-generation Project Helix console in a range that would mark a sharp increase over current hardware.
According to the report, Microsoft’s own projection puts Project Helix at roughly $1,200 to $1,800 unless the company chooses to subsidize the hardware. That figure would put the system well above the launch prices of today’s consoles and could make it one of the most expensive gaming machines ever released at retail. PlayStation is said to be exploring a similar high-price approach for its own next hardware, suggesting both platform holders are weighing premium pricing as development and component costs rise.
The same sources outline a longer timeline for Microsoft’s next systems:
- Xbox handheld is targeting Holiday 2027
- Next-gen Xbox console is targeting Holiday 2028
Development of the handheld has also run into internal friction. Xbox and Windows teams are reportedly arguing over which operating system the device should use. One Xbox executive allegedly threatened to cancel the handheld outright rather than ship it with a Windows-based build. Separately, Game Pass could face a redesign that lets users pick and pay for individual features instead of a single subscription tier.
All of these details come from anonymous sources familiar with Microsoft’s plans. The projected price range, launch windows, and other decisions could still change before anything is announced publicly. Even so, the combination of potential hardware prices near $1,800 and further staff reductions points to a period of significant pressure inside Xbox as the company maps out its next generation.
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