A new report claims that Xbox expects its next-generation console to cost as much as $1,800 and is currently targeting a 2028 release.
A new article from Fortune claims that Microsoft has internally projected that its next Xbox console, codenamed Project Helix, will cost consumers between $1,200 - $1,800. The article notes that Microsoft could choose to subsidize those costs to come in at a lower price point, but unless the tech giant is will to take major losses on the console that would go beyond normal standards, it seems likely that the machine will still cost over $1,000.
Of course, maybe a miracle could happen and the costs for the parts could lower in the coming years, but the odds of that seem excessively low. It's not uncommon for platform holders to take a loss on hardware, as the real money is made on games and subscriptions. However, Xbox doesn't have the same market share that it had 15 years ago. It is harder to justify big gambles, but the cost of the hardware itself may be a gamble which puts Microsoft between a rock and a hard place.
Fortune noted that Microsoft has also moved up engineering deadlines on Project Helix, instructing the team to move faster on building the hardware. As a result, Microsoft has also employed the use of AI to improve the productivity. Xbox CEO Asha Sharma told the outlet that they won't use “AI for AI’s sake,” and are using it to solve engineering and performance problems.
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