A new profile of Xbox's CEO points to a next-gen handheld by holiday 2027 and a dispute about what should run on it.
Kotaku, summarising a Fortune profile of Xbox CEO Asha Sharma, reports that Microsoft wants a next-generation Xbox handheld on shelves by the 2027 holiday season, with the next home console following in holiday 2028. Both details are reported plans, not announcements.
What is known about the 2027 Xbox handheld
- The handheld would likely follow the Asus-made Xbox Ally X.
- It is unclear whether it is part of Project Helix, which Microsoft describes as a "family of devices", or what it will cost.
- Fortune separately reported that Project Helix consoles could cost as much as $1,800 without subsidies.
The operating-system argument
The more interesting part is the reported disagreement inside Microsoft. According to Kotaku's summary, the Xbox team wants software tuned for gaming, while the Windows team wants the handheld to run a version of Windows Home. People briefed on the dispute told Fortune that a senior Xbox executive threatened to scrap the handheld rather than accept the Windows build. For now, Xbox largely controls the operating system for the project. Sharma, for her part, said the two teams work closely and that Xbox cannot build Helix alone.
Why players should care
Kotaku's own view, which is opinion, is that the Ally X's Windows-based interface feels finicky next to the streamlined experience of Valve's Steam Deck, and that Windows can hold back performance. Anyone who has tried to use a desktop operating system with a controller will recognise the problem: menus, pop-ups and launchers designed for a mouse get in the way of simply starting a game.
The wider point is that building a console is as much an internal negotiation as an engineering task. Whether a handheld ends up feeling like a console or a small PC may be decided in a meeting room long before it reaches a store.
Related reading
Picture credit: Xbox
