Microsoft is tightening integration between its hardware and game development teams as it builds its next-generation Xbox console, codenamed Project Helix.

Xbox Chief Content Officer Matt Booty said the company is taking a “side-by-side” approach, with first-party studios involved from the earliest stages of hardware planning – including vision, specifications and long-term design decisions.

“Our teams are involved early on… and we’re there every step of the way,” Booty said on the Official Xbox Podcast.

Xbox currently oversees around 30 internal studios across Xbox Game Studios, Bethesda and Activision Blizzard. Booty highlighted growing cross-studio collaboration, noting Blizzard’s cinematics team is assisting Playground Games on its upcoming Fable reboot, while Rare is supporting Double Fine on Kiln.

He described Xbox’s structure as a “culture of cultures”, aiming to balance creative independence with shared resources and communication.

Further details on Project Helix were outlined by Xbox VP of Next Generation Jason Ronald at GDC, where he confirmed the console will prioritise high performance and a “player-first” experience. The device is being developed in partnership with AMD and is expected to push beyond current rendering limitations with new technologies.

Developer alpha units are slated for release in 2027, signalling that the platform is still several years from a consumer launch.

Project Helix is widely understood to be a hybrid console-PC system, part of Microsoft’s broader strategy to unify its gaming ecosystem and better align hardware with its expanding first-party portfolio.

The approach suggests Xbox is doubling down on a games-led hardware strategy as it looks to compete more directly with Sony and Nintendo in the next console cycle.