Report: Project Helix being engineered using AI and could cost up to $1,800 without subsidisation

We already knew Microsoft's next slab of Xbox hardware wouldn't be cheap thanks to the ongoing component crisis, but a new report from Fortune has provided some indication as to how much the device might cost. 

The publication claims the console, codenamed Project Helix, will cost between $1,200 and $1,800 unless Microsoft decides to subsidise the cost—which, of course, usually does happen. Still, those numbers will no doubt prove startling to many, especially if the top end is closer to reality. 

Notably, sources familiar with the matter also told Fortune that Helix is being engineered using AI in an effort to move project deadlines up by "at least several months." Xbox CEO Asha Sharma told the outlet that she does not approve the use of "AI for AI's sake" but suggested it is a tool that can be used to solve specific engineering and performance problems.

Microsoft currently plans to ship the alpha versions of Project Helix to developers in early 2027, and claims the device has been "designed to play your Xbox console and PC games."

Fortune published those details as part of a wide-ranging profile on Sharma, who was appointed CEO in February this year.

Since taking over from previous Xbox boss Phil Spencer, Sharma has confirmed plans to cut 3,200 jobs across Xbox Games Studios (that figure includes the divestment of studios like Double Fine and Compulsion) before the end of the current fiscal year in June 2027. 

It's a move that has resulted in massive job losses at studios such as id Software and Halo Studios. Fortune claims the next batch of layoffs as part of that year-long purge will be announced in November, before the final round is confirmed in January.