Next-Generation Xbox

Microsoft is changing the way it thinks about the Xbox console. Instead of treating the next generation as a single piece of hardware, Xbox CEO Asha Sharma says the company is moving toward a family of devices for its tenth generation.

The strategy could make the next Xbox much broader than the traditional console sitting under a television. While Microsoft still plans to build a powerful main console, the company is also looking at players who want to take their games with them.

What Is Project Helix?

Project Helix is Microsoft’s codename for its next-generation Xbox console. The company officially confirmed in March that it was developing the system, and Xbox later shared more technical details at the 2026 Game Developers Conference.

Microsoft says Helix is being designed to play both Xbox console and PC games. The company is also working with AMD on a custom system-on-chip and next-generation graphics technology. Xbox says the hardware is being designed for major improvements in ray tracing, efficiency and visual performance.

Developers are expected to receive alpha versions of the hardware beginning in 2027, although Microsoft has not announced a consumer release date.

Xbox Is Planning More Than One Device

The biggest recent development came from Asha Sharma, who reportedly told Xbox employees that the company is moving toward a family of devices for Gen 10.

Her message was straightforward: there will not be one device designed for every type of player.

Xbox still plans to deliver a major console first, but Sharma also acknowledged that many players want gaming options they can use while travelling or away from home.

This suggests that the next Xbox generation could include different hardware formats rather than one traditional console.

Could Xbox Make a Handheld?

A handheld appears to be one of the possibilities behind the new strategy, although Microsoft has not officially revealed a specific next-generation Xbox handheld.

Xbox already has experience in this area through its partnership with ASUS on the ROG Xbox Ally handheld devices. The company has also been working to bring a more consistent Xbox experience to Windows devices.

The new strategy could therefore involve a combination of Microsoft-made hardware and devices created with third-party manufacturers.

However, the exact products, specifications and prices have not been announced yet.

Why Is Xbox Moving in This Direction?

The gaming market is no longer limited to traditional consoles. Players now use PCs, handhelds, mobile devices, TVs and cloud gaming services.

Microsoft has already been moving toward a more connected Xbox ecosystem. Its strategy is built around allowing players to carry their games, progress and identity between different screens. Xbox has also expanded Play Anywhere, which allows supported games to work across Xbox consoles and Windows PCs.

A family of devices fits naturally into that strategy.

Instead of asking players to choose one Xbox machine, Microsoft can potentially offer different hardware for different budgets and lifestyles.

What Does This Mean for the Main Xbox Console?

The traditional console is not disappearing.

Sharma specifically emphasized that Xbox will still have a strong console at the center of its next generation. Microsoft has also described Project Helix as its next-generation first-party console and continues to position console hardware as an important part of the Xbox ecosystem.

That means players who prefer a powerful living-room console should still have a dedicated Xbox option.

The difference is that the console may no longer be the only way to experience the next generation.

Xbox Is Also Thinking About Third-Party Hardware

Another interesting part of Sharma’s comments is the possibility of working with external manufacturers.

Microsoft has already demonstrated this approach through its collaboration with ASUS. The company could potentially allow other manufacturers to build Xbox-compatible devices while Microsoft focuses on the operating system, services and overall ecosystem.

That could give Xbox more hardware variety without requiring Microsoft to manufacture every possible device itself.

What About Xbox’s Recent Restructuring?

The new hardware strategy comes after a major restructuring at Xbox.

In July 2026, Sharma announced plans to reduce Microsoft’s Xbox workforce by approximately 3,200 roles during FY27 and said the company needed to reset its content portfolio, platform and operations. Microsoft described the changes as an effort to create a more focused and sustainable Xbox business.

The family-of-devices strategy therefore represents part of a much larger attempt to redefine what Xbox is.

What Happens Next?

For now, Project Helix remains the center of Microsoft’s next-generation hardware plans. Developers are expected to begin receiving alpha hardware in 2027, but Xbox has not confirmed when consumers will be able to buy the new system.

The company also has not revealed exactly which devices will make up the Gen 10 family.

More details about the hardware, handheld plans, pricing and launch strategy are likely to emerge as development progresses.

Final Verdict

The next Xbox generation may look very different from previous console generations.

Project Helix will remain the main high-performance Xbox console, but Microsoft’s latest comments suggest it could become just one part of a much larger hardware ecosystem.

With handheld gaming growing and players increasingly moving between console, PC and other devices, Xbox appears to be preparing for a future where there is not one Xbox for everyone, but different Xbox devices for different ways of playing.