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Report: Microsoft Plans a Next-Gen Xbox Handheld for Holiday 2027 and Project Helix for 2028

By Jerry VanOster · Oct 20, 2026

Microsoft's next Xbox handheld could land before its next console. In a profile of Xbox CEO Asha Sharma published October 20, Fortune reports that she plans to release a "next-generation handheld device" by the 2027 holiday season and the next console, codenamed Project Helix, by the holidays in 2028. Microsoft hasn't announced dates for either.

Fortune also reports that the Helix console has internally been projected to cost consumers between $1,200 and $1,800, unless Microsoft decides to subsidize it.

The report says the Windows and Xbox teams clashed over what software should run Project Helix. Windows leaders wanted the upcoming handheld to use a trimmed-down version of Windows Home, while Sharma's team wanted to build and control its own software for the best gaming performance. According to people briefed on the clash, a senior Xbox executive threatened to scrap the handheld rather than adopt the Windows build. Fortune says Xbox is now largely controlling the direction of the operating system, and Sharma told it, "We can't build Helix on our own." Engineering deadlines for Helix have also reportedly been moved up by at least several months.

The Verge notes the report doesn't make clear whether the handheld would be built by a partner like ASUS, which made the ROG Xbox Ally devices, or by Microsoft itself. Sharma has described Project Helix as a "family of devices." Fortune also reports that Xbox is planning a Game Pass overhaul with tiers and à la carte add-ons for console-only games, cloud gaming and multiplayer.

Source: Fortune, The Verge

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