Xbox confirms new console is coming - but can it revive the brand?

Microsoft's Xbox division has confirmed it's working on a new console, code-named Project Helix.

The company said the "next-generation" device would "lead in performance" and play both Xbox and PC games, in a departure from its previous machines.

Rumours have swirled for some time that the company - which upset some long-time fans when it began to release exclusive titles on rivals PlayStation and Nintendo Switch - would pivot towards a hybrid machine.

Microsoft's new gaming chief executive Asha Sharma said the announcement was part of its "commitment to the return of Xbox" as a brand.

The Project Helix news was light on details, but sparked big questions.

Although the announcement hinted at a powerful, next-generation machine, it didn't give any hint of its planned specifications nor reveal what it will look like.

Xbox boss Sharma said more would be revealed when the annual Game Developers Conference, or GDC, gets going in San Francisco next week.

It was the last in a string of Microsoft studio takeovers, which included some of the game industry's most acclaimed publishers and developers, such as Fallout maker Bethesda and Forza Horizon studio Playground Games.

The Xbox division, like many other video games companies, has also announced several waves of layoffs, cancelled several major projects and closed popular studios, prompting backlash from fans.

It has leaned hard into its Netflix-style Game Pass, also available on PC, which allows players to download brand new and back catalogue titles for a monthly fee.

The service was called "the best deal in gaming" for consumers when it was first launched in 2017, but it has raised questions over profitability and its impact on the purchase of full-price software.

However, opening up its catalogue to others did mean Microsoft, which also owns Minecraft, was the biggest third party publisher on both PlayStation and Nintendo consoles in 2025.

A recent earnings report made for less optimistic reading, recording a 9% fall in gaming revenue and a 32% drop in hardware revenue.

The company put this down to a quieter slate of releases in the past 12 months, and it does have several big titles, including fantasy adventure Fable, coming in 2026.

While some fans have declared "Xbox is back" following the Project Helix reveal, others have pointed out that the news isn't exactly a bombshell.

In a post on Bluesky, games industry analyst Mat Piscatella said Microsoft had been talking up new hardware plans "for months".

New gaming chief executive Sharma, who previously oversaw some of the firm's AI initiatives, recently took over from former Xbox boss Phil Spencer.

On taking up the role, she said she planned a "renewed commitment to Xbox", with console hardware at the centre the strategy.

But in the same statement she also reiterated the firm's desire to follow its "play anywhere" strategy and make its games available on multiple devices.

Former Edge magazine editor Nathan Brown, in his Hit Points newsletter, said it remained a "mystery" where Sharma planned to take the Xbox brand, but predicted a "messy" year ahead.

Meanwhile, Xbox executive Matt Booty, who was promoted to Sharma's second in command, insisted the company was "confident" in its "strong pipeline of established franchises, new bets we believe in, and clear player demand for what we are building".

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