Project Helix is expected to debut in late 2028, with an estimated price range of $1,200 to $1,800

Details are emerging about Project Helix, Xbox's next-generation console, set to be released in the 2028 holiday season with a price range estimated between $1,200 and $1,800.

Insights shared with Fortune by Xbox CEO Asha Sharma and other insiders reveal that development for the console has been accelerated, demanding that teams expedite their work, partially through the integration of AI.

Sharma clarified to Fortune that AI will be strategically implemented as a tool to address engineering and performance challenges, rather than being used aimlessly. Emphasizing priorities, she noted that Xbox is focusing on "enhancements in efficiency and cost-effectiveness, along with performance improvements" for this future console, aiming to offer consumers more options in gaming purchase and engagement.

Additionally, reports indicate plans for Xbox to introduce a new handheld gaming device by late next year, together with a revamped Game Pass. This update may introduce a tiered system, allowing users to customize their experience with add-ons for console-only experiences, cloud gaming, and multiplayer access.

Despite these innovations, Xbox Game Pass had not met subscriber goals, achieving less than 50% of its target by July 2026. Sharma acknowledged past strategic decisions like investing heavily in Game Pass and expanding their content offerings, which did not yield the anticipated growth. As challenges in the hardware sector mount, Sharma admitted, "We must reset Xbox."

On the back of these operational hurdles, Xbox is undergoing a restructuring that includes layoffs, which are scheduled to occur in waves over the coming months. This decision has been met with mixed feelings from employees, with some appreciating Sharma's openness but others feeling uncertain about their future roles.

Speculation has surfaced about Xbox's future, suggesting scenarios involving sale, spinoff, investor input, or becoming a subsidiary. However, Microsoft’s commercial business CEO, Judson Althoff, vouched for Sharma's capabilities, dismissing the idea that Microsoft would assign her to a division they plan to sell.

Sharma concluded with confidence, stating, "I think we're going to be an important part of Microsoft for a very long time."