The next-gen Xbox won’t cost you $1,800. It can’t. Can it?

The Verge ·

A report puts Microsoft’s next Xbox, codenamed Helix, at $1,200 to $1,800 when it launches in 2028, prompting questions about whether mainstream buyers could afford it. The article argues the estimate may reflect the console’s underlying cost rather than the price customers would pay, while noting that Microsoft has acknowledged affordability will be a challenge.

The article outlines possible ways to spread or reduce the cost, including subsidies, long-term Game Pass bundles, trade-ins and alternative business models. Microsoft has historically sold consoles at a loss, but executives have said that level of subsidy is no longer sustainable after about $20 billion in investment over five years. A high price could also make Helix harder to sell if it supports PC games, since those buyers may use Steam rather than Microsoft’s store.

In short

  • Helix is reportedly projected to cost $1,200 to $1,800.
  • Microsoft has signalled that past hardware subsidies cannot continue.
  • Bundles or other payment models could soften the upfront price.

Steelman: both sides, in good faith

The strongest fair case each way — we don't pick a winner.

The case for

A high launch price may be justified if Helix uses costly, high-end components and Microsoft can no longer afford to subsidise hardware as heavily as before. Bundles, trade-ins or financing could spread the cost, while a premium system might still appeal to players who value its performance and access to both console and PC games.

The case against

A price of $1,200 to $1,800 would put Helix beyond the reach of many mainstream players and could undermine the broad audience needed for a successful console. Even if bundles or trade-ins soften the upfront cost, buyers may see less value if they can play PC games more cheaply elsewhere, including through Steam.

Explained simply

Microsoft’s Xbox is a games console, and Helix is the codename reported for its next generation, expected in 2028. Microsoft makes the console and also sells games and subscriptions, including Game Pass, which gives members access to a library of games.

Console makers have often sold hardware for less than it costs to make, hoping to earn money later from games and subscriptions. Microsoft has said keeping that kind of subsidy going is becoming harder after years of investment, and has acknowledged that affordability will be a challenge.

If Helix can also play PC games, it could appeal to people who might otherwise buy a gaming computer, where games are often bought through services such as Steam. Its price could therefore affect both how many console buyers choose it and how Microsoft earns money from games and subscriptions.

Software

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