Microsoft’s next-generation Xbox console, codenamed Project Helix, could launch with a significantly higher price than previous systems, according to new industry leaks.

The console could mark a major shift in how the company approaches gaming hardware, as it moves closer to the capabilities of high-end gaming PCs.

It comes as Microsoft looks to strengthen its gaming business following recent issues, including a reported 9% decline in gaming revenue and a 32% drop in hardware revenue.

Reports circulating suggest the device could cost between US$999 and US$1,200 (about A$1,420 to A$1,700), making it the most expensive Xbox console ever.

By comparison, the Xbox Series X launched in Australia at A$749 in 2020, while the lower-cost Series S debuted at A$499.

Newly appointed Microsoft Gaming CEO Asha Sharma (pictured) described Project Helix as a next-generation Xbox that will play both Xbox and PC games while “leading in performance.”

The announcement strongly hints that the device will blur the line between traditional consoles and gaming PCs.

Leaks suggest Project Helix will run on a next-generation AMD system-on-chip combining Zen 6 CPU cores with RDNA 5 graphics, a major step forward from the hardware used in the Xbox Series X.

Some reports claim the chip could feature around 30% more compute units than the current console, with architectural improvements potentially delivering far greater performance gains.

It’s suggested the new system could dramatically boost ray tracing and graphics performance, bringing the console closer to high-end gaming PC capability.

The processor is also rumoured to use a hybrid CPU design, pairing high-performance Zen 6 cores with efficiency-focused Zen 6c cores. Such a configuration could allow the system to handle both traditional console titles and more PC-style workloads.

Other leaks point to ambitious specifications, including support for native 4K gaming at 120 frames per second, up to 48GB of GDDR7 memory and a powerful neural processing unit aimed at accelerating AI features.

Microsoft has not confirmed the specifications or pricing.

The rumoured price most likely reflects the rising cost of advanced semiconductor technology, including faster memory and cutting-edge graphics hardware.

If the leaks prove accurate, Project Helix may represent Microsoft’s most radical hardware shift yet.

The move could also pit Microsoft more directly against Valve’s Steam Machine, a console-style PC built around the Steam platform.

Project Helix is widely expected to launch around 2027, although Microsoft has yet to announce an official release window.