Microsoft's Next Xbox Could Cost as Much as a Used Car

Microsoft is working on a new gaming device called Project Helix, and it might come with a hefty price tag. According to a report, the company is internally projecting that a new console launching in 2028 could cost between $1,200 and $1,800. That's a big jump from the $500 you might expect to pay for a new Xbox or PlayStation today. The reason? The cost of making powerful computer chips isn't falling as fast as it used to, and AI companies are buying up components, making them scarcer and more expensive. So even if you're not into AI, its boom could affect your gaming budget.

But there's a twist: Microsoft might decide to subsidize the console, meaning they sell it at a loss and make money back on games and subscriptions. That's what console makers have done for years. However, with prices this high, it's unclear if they will. The report also mentions that the next Xbox might come in two versions: a handheld device by late next year and a traditional console in 2028. The handheld could run a stripped-down version of Windows, but there's been internal fighting over that decision.

For gamers, this could mean a more expensive future. Already, high-end hardware like the Steam Machine and PlayStation 5 Pro are pushing $1,000. If Microsoft's new console really costs $1,200 or more, it might be a tough sell. But Microsoft is also reportedly planning to change Xbox Game Pass to a pick-and-choose model, so you could pay only for the features you use, like cloud gaming or multiplayer. That could save you money if you don't need everything.

Finally, there are rumors that Microsoft might sell off Xbox, but an executive denies that. For now, it's all speculation, but one thing is clear: the days of cheap consoles might be over.