What we know so far: Memory shortages due to the AI boom have cast doubt on the release timing and prices of next-generation consoles from Sony and Microsoft. While rumors have pointed to a possible 2027 launch, a new report pushes that back another year, supporting estimates that both devices could break the $1,000 barrier.
According to Fortune, Microsoft plans to launch its next-generation console, codenamed Helix, in time for the 2028 holiday season. As storage costs rise, the price is internally forecast to be between $1,200 and $1,800 unless the company subsidizes the hardware.
Another new Xbox, a handheld, could launch around the 2027 holiday season. It would presumably support Xbox digital console gaming, unlike Asus’ ROG Xbox Ally, which is little more than a Windows handheld.
The details come from the outlet’s in-depth profile of Xbox CEO Asha Sharma, who replaced Phil Spencer earlier this year. Sources also told Fortune that Sharma plans to convert the Game Pass subscription service to an a la carte model, where users select specific add-ons and online features.
The CEO has previously said she wants to make the service more affordable, and Microsoft has already partially reversed its disastrous price increases.
Helix could be more than double and possibly more than triple the series’ $500 launch price. Microsoft, a major player in the AI boom, has already increased the price of the Series X several times.
Rival console maker Sony is in a similar situation. The PlayStation 5 Pro now costs $900, and trusted leakers say the PlayStation 6’s bill of materials is nearing the $1,000 mark. Sony CEO Hiroki Totoki recently confirmed that the PS6’s launch window was still open, but the company’s decision to stop producing physical discs for new games in January 2028 suggests that the transition is planned for this year.
Microsoft has previously confirmed that Helix development kits will be available to developers next year. Features such as ray tracing, path tracing, neural rendering, machine learning, upscaling, denoising, neural texture compression and multiframe generation will play a central role.
Microsoft’s Helix console and PlayStation 6 are expected to use AMD’s Zen 6 CPU and RDNA 5 GPU architectures. According to leaks, Sony’s console will have eight CPU cores and 40 to 48 GPU processing units, while Microsoft’s console will increase the number of CPU cores to 10 with 20 threads, although the CU count remains unclear. Helix, which will also support PC gaming, could have a 40% lead over the PS6 in some aspects of rendering performance.
The Fortune report also highlights the remaining layoffs at Xbox expected this year and next. Sharma has cut nearly 1,900 jobs so far, aiming to reduce the number by 3,200 next year. Further rounds are planned for October, November and January. Microsoft has laid off around 35,000 employees across the company since 2020.
