Microsoft is planning the next Xbox as a high-end device. With estimated prices ranging from $1,200 to $1,800, it would clearly exceed the cost of current models.
Up to $1,800 for the next Xbox console? What sounds like a far-fetched rumor is apparently at the heart of a new plan by Microsoft.
As the business magazine Fortune reveals in an in-depth background report, the new Xbox head, Asha Sharma, is currently taking drastic measures to lead Microsoft’s struggling gaming division back to the top in its battle against Sony and Nintendo.
Instead of relying on compromises and studio acquisitions, Sharma aims to transform the Xbox division into the world’s “leading entertainment company” through luxury hardware codenamed “Project Helix” and the expansion of franchises modeled after Disney.
“No More Half-Measures”
The plan for this turnaround breaks with the strategy of her predecessor, Phil Spencer. “We’re not here to just do the bare minimum to run a good business,” Sharma made clear in an interview with Fortune. “We’re here to be the number one entertainment company.”
At its core, the strategy rests on three main pillars:
- New hardware, led by a next-gen handheld in 2027 and the new Xbox console in 2028, is expected to deliver high-end performance. Forecasts put the price of the next Xbox between $1,200 and $1,800.
- Using the Disney model, brands will be carefully cultivated and expanded from products focused almost exclusively on video games into major entertainment brands. Movies, TV series, and merchandise are intended to tap into additional markets and make the brands more attractive.
- Redesign of the Xbox Game Pass. Instead of a flat-rate model, it is set to be converted into a multi-tiered system in which certain features could incur additional costs.
Project Helix Could Break New Ground
A quick comparison shows the new dimensions Microsoft is venturing into here.
- While current consoles like the Xbox Series X or the PlayStation 5 started at around $500, and even a premium upgrade like the PS5 Pro remains under the $1,000 mark, “Project Helix” would cost between $1,200 and $1,800—up to twice as much as Sony’s current flagship.
- However, this high price isn’t solely due to the inclusion of high-performance components in the console. As Piers Harding-Rolls, a gaming analyst at Ampere Analysis, noted to Fortune, the entire industry is grappling with skyrocketing hardware costs and shortages of memory chips.
- According to insider information, Sony’s upcoming PlayStation 6 could also exceed the $1,000 mark. Given the current market conditions, the cost of memory components alone could already run Sony $680.
Layoffs and Spin-Off Rumors
The ambitious plan to take the top spot is taking a heavy toll on many employees. To boost the low profit margin, the Xbox chief is taking tough measures.
According to Fortune, 1,868 jobs have already been cut, with further rounds of layoffs planned for November and January.
In addition, smaller studios have been restructured or closed, as Xbox will strictly tie future funding to commercial goals.
Pressure is also mounting from Microsoft CEO Satya Nadella, who is investing billions in the global AI race. Rumors of a possible sale or spin-off have been circulating for some time.
Sharma herself, however, remains defiant and emphasized at the end of the interview: “I think we’ll continue to be an important part of Microsoft for a very long time.”
Now we’d like to hear your opinion. Would you buy it if the price exceeded the 1,000-euro mark, or do you think that’s crossing a line? Feel free to leave a comment below.
