Price and release plans

Fortune's profile of Xbox CEO Asha Sharma says Microsoft's next console, Project Helix, is internally projected to cost consumers between $1,200 and $1,800. The report, which outlets carried on 20 October 2026, places the console in the 2028 holiday season and a next-generation handheld device in the 2027 holiday season. Ars Technica notes that the range reflects what the company has "internally been projected" to charge, and that consumer prices could come down if Microsoft decides to subsidize the cost. Engadget recalls that Sharma described Project Helix in August as a "family" of gaming devices, so multiple launches do not come as a surprise.

The reported price sits well above the current generation, which Xataka says launched at 500 euros. Ars Technica lists the PlayStation 5 Pro at $900 and the Xbox Series X at $750 as current starting prices, and says the Steam Machine has passed $1,000. Engadget suggests the high figure could be a tease ahead of a lower final price, while noting that a console at that level would make it harder for Xbox to grow from 100 million daily active users toward Sharma's goal of more than 1 billion people daily.

Projected low end1,200

Projected high end1,800

Projected low end

1200 USD

Projected high end

1800 USD

Data from the article text

Layoffs under the reset

In July, Sharma announced an organizational "reset" with planned layoffs of 3,200 staff across Microsoft's 2027 fiscal year, including 1,600 cuts at that time. Microsoft laid off around 260 employees in September. Fortune now reports new rounds planned for later in October 2026, followed by cuts in November and January. Sharma's changes also let Double Fine and Compulsion Games become independent again. Ninja Theory, the developer of Senua, may also close.

Sale speculation

The report also touches on speculation that Xbox could be spun off or sold. Judson Althoff, CEO of Microsoft's commercial business, appeared to downplay that idea in comments to Fortune.

“Asha is one of the best leaders we have at the whole company.”

Althoff added that the company would not have placed Sharma on a business it intends to sell, and said there would be a lot of speculation before the matter is settled. Sharma had earlier told The New York Times that "Xbox is not for sale."

Internal disputes and Game Pass

Fortune reports, citing people briefed on the matter, that Microsoft is divided over whether the handheld should run a trimmed-down version of Windows Home or a bespoke operating system controlled by the Xbox group. One high-level executive reportedly threatened to cancel the handheld if it were forced to use Windows. Fortune writes that the Xbox team now largely controls the direction of that operating system, though Sharma said the two groups still work closely together.

Fortune also says Microsoft has pressed the Project Helix hardware team to move timelines up by at least several months, partly by using AI tools. Separately, people familiar with the strategy told Fortune that Game Pass will move to a heavily tiered a la carte structure, with add-ons covering console-only games, cloud gaming and multiplayer. Engadget attributes the Game Pass detail to unnamed insiders, and no start date for that change has been given.