Microsoft's Next-Gen Xbox May Cost Up to $1,800, Report Says
A Fortune report cites internal estimates that the upcoming Xbox console, slated for a 2028 launch, could be priced between $1,200 and $1,800, prompting discussion of possible pricing strategies.
Fortune reported that internal Microsoft sources project the next Xbox console, codenamed Helix, could retail for $1,200 to $1,800 when it arrives in 2028. The publication noted that the price range assumes Microsoft does not provide a subsidy for the device.
Microsoft has historically sold consoles at a loss, recouping revenue through game sales and Xbox Game Pass subscriptions. In 2021 the company confirmed such a subsidy model, and in 2023 it was reported that Microsoft spent about $1.5 billion to keep the Xbox Series X and Series S priced at $499 and $299 respectively.
In a memo titled “Xbox reset,” senior executive Asha Sharma wrote that the $20 billion in content, platform and hardware subsidies made over the past five years could not continue indefinitely. Microsoft CEO Satya Nadella echoed the need for a sustainable business model on the Hard Fork podcast, stating that the company must turn its long-term investments into a sustainable operation.
Analysts suggest several ways Microsoft could offset a high-priced console. One possibility is a subscription model that bundles the console cost with Xbox Game Pass, similar to mobile phone contracts that offer devices for $0 with a service commitment. Another scenario involves renting the hardware through the company’s pay-as-you-go cloud gaming service, which currently starts at $3.99 for 10 hours.
Microsoft officials have emphasized affordability. In June, strategy officer Matthew Ball said the company was “working very hard to rethink everything … about Helix” with affordability in mind. Sharma has also indicated that the Helix will be part of a “family of devices,” allowing partners such as Asus to produce lower-cost variants with differing storage and memory configurations.
The report arrives amid broader industry concerns about component shortages and rising costs for high-performance hardware. Xbox chief strategy officer Matthew Ball told The Game Business in June that demand for the console exceeds supply, citing limitations in RAM availability.
If the projected price materializes, Microsoft may target early adopters willing to pay a premium, while offering more affordable options through existing consoles, partner devices, or subscription and rental models.