Microsoft has yet to announce the expected cost of Xbox Project Helix, but company executives acknowledged difficulties in pricing components that will affect future consoles. Asha Sharma has talked about the next generation Xbox needing “innovation” to bring down the price, but so far the announcement has been light on specifics.
analyst Amperometric analysis They list 3 possible ways to keep the price of the Xbox Project Helix (and Playstation 6) under $1,000:
- The first option is to delay the release of Project Helix and Playstation 6 until after 2028. This will allow us to wait for possible reductions in component costs. Xbox has previously warned that pricing could worsen in 2027, so delaying the release is seen as a way to reduce production costs.
- The second option is to release Project Helix in 2028, but its cost is heavily subsidized by Microsoft. The company will be able to offset the impact of lower console prices through new monetization models, active game sales and optimization of distribution channels. In this case, production costs will remain high, but part of them will be repaid through subsequent user purchases. Digital Foundry previously noted that Microsoft may reconsider the idea of releasing a next-generation Xbox with Steam support in order to earn more revenue from content on its store.
- The third option is to change the concept of the device. Xbox will likely focus on new features and the ability to use the console rather than improving the performance of the device. The Nintendo Wii and Switch were cited as examples of Ampere Analysis.
Ampere Analysis estimates that next-gen consoles starting at $1,000 could result in a 38% reduction in sales over the first five years compared to the Xbox Series X | S and Playstation 5.
Earlier, insider Jez Corden noted that Xbox doesn’t understand how to make money on Project Helix if they implement the ideas laid out by previous management.