The Xbox Handheld Will Matter So Much More Than ‘Project Helix’

All the usual pundits are pulling their hair out over a recent blockbuster Fortune story from this week detailing what the next-gen Xbox console will supposedly cost. That rumored price point doesn’t matter nearly as much as the other big news: the company’s first self-made Xbox handheld sounds like the gaming device we really need right now.

Xbox’s Project Helix—its next-gen console that’s supposed to combine console and PC gaming under one roof—is “projected to cost consumers between $1,200 and $1,800, unless Microsoft decides to subsidize the cost,” according to Fortune. Xbox CEO Asha Sharma has repeatedly intoned that few people will buy an Xbox if it costs so much. You can try to tell a player they’ll have access tothe OG Xbox, Xbox 360, and current console catalog as well as PC games. It will still be hard for any player’s budget to justify.

The online riff-raff are missing the forest for the trees. Xbox reportedly has its console slated for the end of 2028. That’s two years away, and Xbox could easily change its plans in between now and then. Xbox is likely pushing its console release back in order to see how memory prices shake out over the next few years. In that time, it has to fill the space, and that’s where the Xbox handheld comes into play.

Fortune doesn’t offer much in the way of details about what this device is, how much it will cost, or its promised performance. Instead, reporter Sebastian Herrera tells us we can expect it to hit the scene in late 2027. But here’s the exciting thing: this handheld will be wholly distinct from current branded handhelds, specifically the Asus ROG Xbox Ally, and the most recent edition, the ROG Xbox Ally X20. The report notes that the upcoming handheld won’t be using today’s current Windows FSE, the full-screen experience. Sharma reportedly wants this device to use “its own software to get the best gaming performance.”

That’s where it starts to click. Microsoft has not meaningfully updated its Windows FSE since it shoved the software out more than a year ago. The company managed to get sleep game suspension working more consistently (though not perfectly) and added sounds to the Xbox app. It’s still a dull gray void that lags as a full UX. A new user interface will be a godsend for a next-gen handheld device, one made by Xbox for Xbox gamers. It will be even better if the team can make this device play PC games, even if it’s not running a trimmed-down version of Windows 11 Home.

Compared to Project Helix, we know very little about this supposed handheld. We don’t know if it will use some cut-down version of the AMD Magnus processor being built for the console. We don’t know much memory it could have, whether it will be a device dedicated to streaming or to native gaming, or have an inkling of how much it will cost. At Xbox’s Game Dev Update back in April, the company explained: “As opposed to designing one piece of silicon for an individual device, we’re now designing a family of silicon that will work across many different form factors, from a console to a handheld.”

Just this week, AMD declared the Series S and Series X consoles will have access to its recent FSR 4.1 upscaling model within the next few weeks, bringing better overall performance and improved visuals. It’s good news for consoles, but it’s an even bigger deal for handhelds. Smaller devices rely on a slimmer power envelope and battery life. Upscaling becomes even more important when you’re playing games on the go. Just ask the Nintendo Switch 2, where many AAA games rely heavily on Nvidia’s DLSS upscaling.

With so little information, we have to read between the lines. Leaker Moore’s Law is Dead, who has a consistent track record on silicon leaks, previously detailed a supposed “Project Green Leaf” inside Xbox. It’s a supposed initiative to reduce the power headroom of gaming chips up to 36% and then limit frame rates in a way that maintains steady performance—all of which seems perfect for handhelds. At first, this was apparently an initiative for the company’s existing Windows-based handhelds, but it may turn out to be the driving force behind this upcoming Xbox mobile device.

Xbox will have to compete against Nintendo’s Switch 2 as well as a supposed Sony PlayStation 6 handheld. But if Xbox can make a device that plays PC as well as all past Xbox games on the go, it could be the device for the rest of us who can’t afford some $1,800 console.