Next Xbox could cost $1,200 to $1,800 unless Microsoft keeps subsidising it
The price pressure sits against leadership's own statements that subsidies cannot continue and that the market needs cheaper consoles.
A Fortune report, citing internal Microsoft sources, projects that the next Xbox, codenamed Helix and due around 2028, could retail between $1,200 and $1,800 unless Microsoft subsidises the price. The Verge notes this sits uneasily with recent statements from Xbox leadership, including Phil Spencer's remark that the market won't grow with $1,000 consoles and Asha Sharma's call for radically different business models. Microsoft has said subsidies cannot continue, citing about $20 billion in content, platform and hardware support over five years. The piece sets out possible routes to a lower upfront cost, such as a bundled subscription tied to a trade-in, and argues that a high price could still be squared with the company's position if the console is aimed at a narrower premium audience.
Why it matters
For people who follow the console business, the gap between the projected price and recent leadership comments is the story. Microsoft has said subsidies cannot continue, and its own executives have argued that consoles must cost less to grow the market, yet internal projections put Helix far above $1,000. Whichever path Microsoft takes shows whether it is willing to accept a smaller, premium audience or keep chasing a mass one. Reporting on Series X and S pricing, which may have been sold below cost, suggests the company has already been trading margin for reach. The outcome will show how far the subsidy model can be moved away from without losing its audience.
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