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The next-gen Xbox won’t cost you $1,800. It can’t. Can it?
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- DeepHorus
A Fortune report this week revealed that Microsoft's next-generation Xbox, codenamed Helix, is projected to cost between $1,200 and $1,800 when it launches in 2028. The price could be lower if Microsoft subsidizes the console, insiders noted. This raised concerns about mass-market viability.
Historically, Microsoft has sold Xbox consoles at a loss, recouping costs through game and subscription sales. In 2021, Microsoft told The Verge it subsidized hardware, and a 2023 report suggested it spent $1.5 billion to keep the Xbox Series X and S at $499 and $299. However, new leadership signals a shift away from subsidies.
Asha Sharma, Xbox's new boss, wrote in a memo that $20 billion in subsidies over five years "cannot continue." Former Xbox boss Phil Spencer said, "We're not going to grow the market with $1,000 consoles." Sharma echoed that mass audiences can't afford thousands.
Xbox strategy chief Matthew Ball said the company would rethink affordability, and Sharma mentioned "radically different business models." Former Microsoft exec Mike Ybarra said, "I wouldn't release it at all" at that price. Sarah Bond called Helix "the largest technical leap" in 2024 and "a very premium, very high-end curated experience," comparing it to the $1,000 Xbox Ally X.
CEO Satya Nadella stressed on the Hard Fork podcast the need for a sustainable business, saying, "No one can accuse Microsoft of not having invested for 25 years, and now we have to turn this into a sustainable business." Possible solutions include subsidies or subscription bundles with Xbox Game Pass. However, rising RAM and storage costs make a high price plausible.
The gaming community awaits details as Microsoft balances innovation with affordability. Success may hinge on delivering a premium experience without past subsidy practices. With 2028 launch, Microsoft must decide whether to subsidize or risk a DOA console.
