Report: Xbox plans Helix handheld for 2027, console for 2028, Game Pass overhaul

Xbox CEO Asha Sharma reportedly plans a next-gen Helix handheld and console, an overhauled Game Pass, and further layoffs. The details come from a Fortune report, which 80 Level summarized on 22 October 2026. The source material does not include a confirmation from Microsoft, so treat all of it as reported rather than announced.

On hardware, the handheld is expected by the 2027 holiday season and the console by the 2028 holidays. The report projects the Helix console at $1,200 to $1,800 unless Microsoft decides to subsidize it. Those are estimates, not set prices.

The report also describes a dispute over Helix software. Windows leaders reportedly wanted the handheld to run a trimmed-down Windows Home, while Sharma's team wanted its own software for better gaming performance. People briefed on the matter said a senior Xbox executive threatened to scrap the handheld rather than adopt the Windows build. Xbox is now said to be largely steering the operating system direction, and Sharma is quoted as saying, "We can't build Helix on our own."

On Game Pass, people familiar with the strategy say Xbox plans a tiered system where players choose individual features. The examples given are add-ons for console-only games, cloud gaming and multiplayer. No launch timing for this change appears in the source.

On staffing, the report says Xbox has laid off 1,868 people as part of a plan to reduce its workforce by 3,200 over the next year, and has removed several management layers. More rounds of cuts are reportedly planned for October, November and January, though the plans may change. Developers building for Xbox platforms should wait for official Microsoft statements on hardware, pricing and Game Pass terms before planning around any of this.