Xbox confirms new console is coming - but can it revive the brand?
Source: BBC Technology
What is Project Helix?
Microsoft’s Xbox division has confirmed it’s working on a new console, code‑named Project Helix. The company says the “next‑generation” device will “lead in performance” and play both Xbox and PC games, a departure from its previous machines.
Rumours have swirled that Microsoft, after releasing exclusive titles on rivals PlayStation and Nintendo Switch, would pivot toward a hybrid machine. New gaming chief executive Asha Sharma said the announcement was part of its “commitment to the return of Xbox” as a brand.
The Project Helix news was light on details but sparked big questions. Although the announcement hinted at a powerful, next‑generation machine, it didn’t reveal specifications or design. Sharma said more would be revealed at the annual Game Developers Conference (GDC) in San Francisco next week.
Xbox: How we got here
- Xbox’s recent handheld console was built in conjunction with hardware company ROG.
- It was the latest in a string of Microsoft studio takeovers, including Bethesda and Playground Games.
The Xbox division, like many other video‑game companies, has announced several waves of layoffs, cancelled major projects and closed popular studios, prompting backlash from fans. It has leaned heavily into its Netflix‑style Game Pass, also available on PC, which allows players to download new and back‑catalogue titles for a monthly fee. Launched in 2017, the service was hailed as “the best deal in gaming,” though questions remain about profitability and its impact on full‑price software sales.
Opening its catalogue to other platforms meant Microsoft—owner of Minecraft—became the biggest third‑party publisher on both PlayStation and Nintendo consoles in 2025. A recent earnings report recorded:
- a 9 % fall in gaming revenue
- a 32 % drop in hardware revenue
The company attributed the decline to a quieter slate of releases over the past 12 months. Several big titles, including the fantasy adventure Fable, are slated for 2026.
The future of Xbox
While some fans have declared “Xbox is back” following the Project Helix reveal, others note the news isn’t exactly a bombshell. In a post on Bluesky, industry analyst Mat Piscatella said Microsoft had been talking up new hardware plans “for months”.
New gaming chief executive Sharma, who previously oversaw AI initiatives, recently took over from former Xbox boss Phil Spencer. She pledged a “renewed commitment to Xbox”, with console hardware at the centre of the strategy, while reiterating the firm’s “play anywhere” approach to make games available on multiple devices.
Former Edge magazine editor Nathan Brown, in his Hit Points newsletter, called it a “mystery” where Sharma will take the Xbox brand, predicting a “messy” year ahead. Xbox executive Matt Booty, promoted to Sharma’s second‑in‑command, said the company is “confident” in its “strong pipeline of established franchises, new bets we believe in, and clear player demand for what we are building”.
