It’s no secret that computing hardware is likely to be expensive for the next few years, but the next-generation Xbox might get close to $2,000 which says internal estimates put the price between $1,200 and $1,800. It might not arrive until 2028, too
The Xbox division has undergone a major shake-up in the past year, including the appointment of a new CEO, Asha Sharma, and additional layoffs. Sharma has promised big things, including making Xbox a billion-player-a-day platform. (It currently pulls in around a 10th of that figure.)
Typically, a new console would revitalize a brand and set it on a new path. But with global hardware prices still astronomically high, it raises the question of whether a new system with Xbox-like performance and features can be affordable. Microsoft’s estimates suggest not.
If it were to launch at $1,800, the next Xbox would cost nearly four times as much as its predecessor at launch. And though a future PlayStation 6 console is estimated to cost north of $1,000, rumors suggest it will be cheaper than the Xbox at launch.
Xbox CEO Asha Sharma (Credit: David Paul Morris/Bloomberg
Perhaps a next-generation Xbox handheld will be more affordable. That’s expected for the holiday 2027 season, Sharma tells Fortune.
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Although that might give current hardware price volatility time to settle, most major tech firms believe we’ll still be living with some form of memory shortage in 2028. That’ll be even more apparent when Microsoft has to finalize its design choices for the codenamed Xbox Helix, and make major purchasing decisions ahead of mass manufacturing of the system, presumably sometime in 2027 or early 2028.
That’s why we’re looking at such high prices. But as justified as they are, will people be willing to pay it? Some undoubtedly will. There will be big-game exclusives and new, exciting capabilities that last-gen systems won’t be able to match. But with younger generations more interested in PC and phone gaming, and prices there being far more affordable, not to mention game streaming offering a credible experience for $20 a month, will enough people pay over $1,500 for a living room console in 2028? I’m not so sure.
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Jon Martindale
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Jon Martindale is a tech journalist from the UK, with 20 years of experience covering all manner of PC components and associated gadgets. He’s written for a range of publications, including ExtremeTech, Digital Trends, Forbes, U.S. News & World Report, and Lifewire, among others. When not writing, he’s a big board gamer and reader, with a particular habit of speed-reading through long manga sagas.
Jon covers the latest PC components, as well as how-to guides on everything from how to take a screenshot to how to set up your cryptocurrency wallet. He particularly enjoys the battles between the top tech giants in CPUs and GPUs, and tries his best not to take sides.
Jon’s gaming PC is built around the iconic 7950X3D CPU, with a 7900XTX backing it up. That’s all the power he needs to play lightweight indie and casual games, as well as more demanding sim titles like Kerbal Space Program. He uses a pair of Jabra Active 8 earbuds and a SteelSeries Arctis Pro wireless headset, and types all day on a Logitech G915 mechanical keyboard.
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