Why Microsoft’s Next Xbox Could Near $1,800—But Probably Won’t
WHO:
The Verge - Microsoft CEO Satya Nadella said, “No one can accuse Microsoft of not having invested for the last 25 years, and now we have to turn this into a sustainable business.”
The Verge - Sarah Bond described Helix as “a very premium, very high-end curated experience” and compared it with gaming PCs, including the $1,000 Xbox Ally X handheld.
The Verge - Microsoft is developing Project Helix, its next-generation Xbox; Microsoft CEO Satya Nadella, Xbox chief strategy officer Matthew Ball, Xbox CEO Asha Sharma, former Xbox president Sarah Bond, and former Microsoft executive Mike Ybarra are among the people quoted or discussed.
Fast Company - Microsoft and Sony are developing the next Xbox and PlayStation 6, respectively. Xbox CEO Asha Sharma said she wants Xbox to reach more than 1 billion people per day, about 10 times its current daily active user base.
The Verge - Former PlayStation and Xbox executives Shuhei Yoshida, Shawn Layden, and Mike Ybarra have argued that another console generation may not be necessary.
WHAT:
The Verge - Microsoft could bundle a next Xbox with a more expensive Game Pass tier, requiring a subscription commitment and potentially a qualifying trade-in; the article compared this with AT&T’s offer of a $1,200 iPhone 18 Pro for $0 with 36 months of service costing at least $100 per month.
The Verge - The article reported that the $1,300 Xbox Ally X20 follow-up is sold out.
The Verge - Fortune reported that Microsoft insiders projected the Helix could cost consumers between $1,200 and $1,800, unless Microsoft subsidizes it. The Verge said high RAM and storage costs could make the system cost more than $1,000 to build, package, distribute, and sell.
Fast Company - A reported Microsoft internal projection puts the next Xbox’s consumer price at $1,200–$1,800; Microsoft has not publicly commented on expected pricing.
The Verge - Microsoft historically subsidized Xbox hardware, including the Xbox Series X and S; a 2023 report said it may have spent $1.5 billion to price them at $499 and $299, respectively. Sharma’s “Xbox reset” memo cited $20 billion in content, platform, and hardware subsidies over five years and said, “Going forward, this cannot continue.”
Fast Company - Sony reportedly lost $307 per PlayStation 3 sold at launch, totaling $4.7 billion in losses over the system’s first three years.
Fast Company - Leaked reports suggest the PlayStation 6 could cost more than $1,000; neither Sony nor Microsoft has announced next-generation console retail prices.
Fast Company - A market-analysis study found 44% of gamers consider mobile their primary gaming platform, while 21% prefer PCs.
The Verge - Microsoft announced FSR 4.1 support for Xbox Series S and X; the technology is intended to improve image quality, including crisp 4K images.
The Verge - Microsoft’s Xbox cloud gaming pay-as-you-go service starts at $3.99 for 10 hours or $11.99 for 50 hours.
Fast Company - Microsoft reportedly emailed some Xbox owners suggesting they trade in unused consoles at Best Buy. The message said: “Haven’t played on your console in a while? If you’ve moved on to Xbox on PC or another way to play Xbox games, it may be time to trade in your console to Best Buy.”
Fast Company - The PlayStation 5 has sold more than 95 million units, compared with 117 million PlayStation 4 units over the PS4’s lifetime.
WHERE:
Fast Company - The reported Xbox-owner trade-in initiative directs customers to Best Buy.
The Verge - Microsoft’s cloud gaming service lets customers play Xbox games without owning a console.
WHEN:
The Verge - Fortune’s report projected the next Xbox’s arrival in 2028; insiders reportedly said Microsoft’s next handheld Xbox is coming holiday 2027.
Fast Company - Microsoft’s next Xbox is reportedly targeting a 2028 release. The PS6 was initially expected next holiday season, but its release could reportedly be delayed until 2029.
Fast Company - Grand Theft Auto VI is expected to be released next month and could take as many as 150 hours to complete.
The Verge - Ybarra posted that players should stick with PS5 Pro or Xbox Series X until prices normalize; the article attributes the post to October 20, without specifying a year.
The Verge - Sharma cut Xbox Game Pass Ultimate to $22.99 per month in April, saying, “Game Pass has become too expensive for players.” She also removed Call of Duty games and unlimited Xbox Cloud Gaming access from the offering.
WHY:
The Verge - A high-priced Helix that also runs PC games could make hardware subsidies riskier for Microsoft because buyers may use Steam, the dominant PC gaming platform, rather than Microsoft’s storefront.
The Verge - The article said that dividing Xbox players into those who can and cannot afford a high-priced console could discourage developers from targeting it as a true next-generation system; game executives have also cited unsustainable development costs and teams being cut after releases.
The Verge - The articles link potential console price increases to elevated memory, RAM, and storage costs, including memory-chip demand from AI companies.
Fast Company - Microsoft may be less able to absorb large hardware losses because of disappointing sales in the current and previous console generations and layoffs affecting thousands of employees.
Fast Company - Sony may delay the PS6 until 2029 in hopes component prices fall; rising memory costs have made typical price reductions during a console’s life cycle difficult.
The Verge - Ball attributed console supply constraints to RAM shortages and said demand exceeded supply.
HOW:
The Verge - Microsoft could lower the effective cost through hardware subsidies, a more expensive Game Pass subscription bundled with the console, rental or cloud gaming, or a family of devices that includes lower-cost partner-made Xbox systems.
The Verge - Microsoft could offer flexible storage configurations; Sharma said, “We will have to empower customers to have very flexible storage offerings.”
Fast Company - Microsoft’s trade-in initiative was announced alongside price increases for new systems.
(UPDATED October 23, 2026 08:11 UTC)
Microsoft is developing Project Helix, its next Xbox, but the console could cost between $1,200 and $1,800, according to internal projections. High memory, RAM, and storage costs are driving up production expenses, while Microsoft says heavy hardware subsidies can’t continue. Xbox chief Asha Sharma has cited $20 billion in subsidies over five years and wants Xbox to reach more than a billion people a day. Microsoft could make Helix more affordable through trade-ins, flexible storage, cloud gaming, or a higher-priced Game Pass bundle. The company has encouraged some owners to trade in unused consoles at Best Buy, as it raises prices on new systems. Helix is reportedly targeting a 2028 release, while Microsoft’s next handheld is expected in holiday 2027. Sony’s PlayStation 6 could be delayed until 2029 as component costs remain high. Meanwhile, Microsoft is adding FSR 4.1 to current Xbox consoles and offering pay-as-you-go cloud gaming.
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(UPDATED October 23, 2026 07:26 UTC)
Microsoft’s next Xbox, called Project Helix, could cost between $1,200 and $1,800, according to reported internal projections, with memory and storage costs driving the price. The company has not announced a retail price, and its next console is reportedly targeting a 2028 release. Microsoft has historically subsidized hardware, but Xbox CEO Asha Sharma has said that level of spending cannot continue. She wants Xbox to reach more than 1 billion people daily, while Microsoft explores flexible storage, cloud gaming, and lower-cost partner devices. The company also offers pay-as-you-go cloud gaming and has suggested some owners trade in unused consoles at Best Buy. Sony’s PlayStation 6 could also cost more than $1,000 and may be delayed until 2029 as component prices remain high. Meanwhile, 44 percent of gamers say mobile is their primary platform, and Microsoft is bringing FSR 4.1 image improvements to current Xbox consoles.