Microsoft’s next-generation Xbox may launch after 2028: Here is how much it may cost

Gamers must brace for expensive computing hardware over the next few years, specifically for flagship consoles. According to a report by Fortune, internal Microsoft estimates project that the next-generation Xbox could cost between $1,200 and $1,800. On top of the potential pricing spike, the system may not hit store shelves until 2028. Notably, at an $1,800 ceiling, the upcoming console would cost nearly four times as much as its predecessor did at launch. This comes as industry rumours suggest Sony’s anticipated PlayStation 6 could also climb upwards of $1,000.New leadership and hardware realitiesThe price and launch timeline come at a time when Microsoft’s gaming division is undergoing a period of major restructuring, marked by additional workforce layoffs and the appointment of Asha Sharma as the new chief executive officer (CEO) of Xbox. Sharma has laid out targets for the brand, including scaling Xbox into a billion-player-a-day platform.Meanwhile, persistent global hardware inflation is challenging the standard business model. Microsoft itself believes it’s no longer feasible to develop a high-performance machine that boasts flagship capabilities and fits in the traditional consumer-friendly price tags.For players seeking a more wallet-friendly entry point, Microsoft may offer an alternative ahead of its flagship living-room hardware. Sharma told Fortune that an official next-generation Xbox handheld is planned for release in time for the holiday 2027 shopping season.While launching the portable device in late 2027 gives global component volatility some breathing room, major technology manufacturers widely anticipate that industry-wide memory shortages will linger well into 2028.What is Microsoft's Project ‘Xbox Helix’The persistent supply snags present a major hurdle for the upcoming home console, codenamed Xbox Helix. Microsoft will need to lock down final architectural choices and commit to massive component orders ahead of high-volume mass production – an operational milestone anticipated for late 2027 or early 2028. The surging costs of raw silicon, advanced memory modules and specialised fabrication account directly for the eye-watering estimates.While cutting-edge exclusives and next-generation processing muscle will inevitably attract dedicated early adopters, the prospect of a console priced past $1,500 introduces steep commercial risks.You use AI every day. Now get your AI Quotient. Take the AIQ test.