Report: Microsoft’s Project Helix Plans Include New Handheld in 2027 and New Console in 2028

After Xbox CEO Asha Sharma previously described Project Helix, the codename for Microsoft’s next-gen Xbox, as a “family of devices,” Fortune reported yesterday that the Xbox team is indeed planning to replicate the two-pronged approach of the Xbox Series X|S generation. According to the report, we may see a “next-generation handheld device” in the holiday 2027 period, followed by a traditional Xbox console a year later.

Even though Microsoft partnered with Asus on the ROG Xbox Ally handhelds, these devices are actually PCs running Windows 11, and they don’t support Xbox console games such as the upcoming GTA VI. The Fortune report hints at a first-party Xbox handheld that would be compatible with the full ecosystem of Xbox games. However, it also mentions internal clashes between the Xbox and Windows teams over the actual software that will power Microsoft’s next-gen Xbox devices.

“Windows leaders wanted an upcoming handheld device to use a trimmed-down version of Windows Home. Sharma’s team, meanwhile, has sought to build and control its own software to get the best gaming performance. Tensions ran high enough that a senior Xbox executive threatened to scrap the handheld project rather than adopt the Windows build, according to people briefed on the clash,” the report reads.

Sharma, who was profiled by Fortune, told the publication that “We can’t build Helix on our own,” adding that the two teams are collaborating closely. Xbox CTO Scott Van Vliet echoed this sentiment in a reaction to a Windows Central article about the Fortune report. “Helix OS is being built on Windows, and the XBOX and Windows teams are working closely together on the next generation of devices. The account cited here misrepresents both the technical work and the relationship between the teams,” the exec posted on X.

The Fortune report includes other interesting details about Project Helix, including pricing expectations for the new console. “As it stands, 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,” the report reads.

Lastly, Fortune learned that Sharma is already planning three more rounds of layoffs at Xbox: The first one is reportedly coming later this month, with the second and third rounds coming in November and January. Sharma previously announced 3,200 job cuts in July, and 1,600 employees were immediately impacted. More job cuts and studio reorgs followed in September, which is also when Xbox Chief Content Officer Matt Boots announced that the next Halo game would be developed by Activision.