Fortune says Microsoft's next Xbox could cost $1,200 to $1,800

A report from Fortune has placed a stunning price tag on Microsoft's next console. According to the publication's Microsoft insiders, the next Xbox is projected to cost between $1,200 and $1,800 when it arrives in 2028.

The Verge's Sean Hollister reacted to the report, saying the console would be "dead on arrival" at that price and that Microsoft could not possibly charge that much if it wants the next generation to be a success.

Former Microsoft executive Mike Ybarra has also weighed in, recently saying, "I wouldn't release it at all."

Neither Microsoft nor the Verge's report indicated whether the company has set a final price or whether the projected range represents an internal estimate. The report did not include comment from Microsoft.

Hollister also questioned whether former Xbox boss Phil Spencer had already acknowledged that people would not pay that much.

The report follows a broader industry trend of rising console prices. Sony's PlayStation 5 Pro, released in 2024, launched at $699, and standard console prices have climbed steadily this generation. The projected Xbox price would represent a significant leap even from that benchmark.

Analysis

Why This Matters

A $1,200+ console would be a massive price leap that could shrink the Xbox audience dramatically, especially if Sony's next console comes in lower
It would signal Microsoft doubling down on a premium strategy at a time when its multiplatform publishing push suggests it is moving away from hardware dependence
The projection, if accurate, could force an early strategic decision for Microsoft: accept a niche product or cancel the project

Background

The console industry has historically sold hardware at a loss, recouping through game sales and subscriptions. This generation saw the Xbox Series X and PlayStation 5 launch at $499. Rising component costs and inflation have pushed prices higher, with Sony's PS5 Pro arriving at $699 in 2024. Microsoft has already shifted strategy under CEO Satya Nadella, releasing former Xbox exclusives on PlayStation and Nintendo Switch, leading many analysts to question the long-term role of dedicated Xbox hardware. The projected $1,200-$1,800 price would make the next Xbox the most expensive mass-market console ever.

Key Perspectives

The Verge: Sean Hollister argues the console is "dead on arrival" at that price. He points to Microsoft's own admission that it can no longer subsidise hardware heavily, suggesting the price reflects real costs rather than profit-taking. Former Microsoft executives: Mike Ybarra has publicly said he would not release the console at all, implying the project may not make strategic sense regardless of price. Skeptics: Industry observers note that PC gaming hardware at comparable prices already exists, raising the question of why a customer would buy a locked-down console. A $1,200-$1,800 Xbox also competes directly with mid-range gaming PCs, undercutting the traditional value proposition of consoles.

What to Watch

Whether Microsoft officially confirms or denies the price range ahead of planned development milestones
Sony's next console plans: a cheaper PlayStation 6 could capture the market Microsoft cedes
Xbox's 2027-2028 game lineup: strong exclusive titles would be needed to justify premium hardware

Checked

12 claims in this story checked against 1 source: 4 supported.

Show each claim

SupportedFortune reported that the next Xbox is projected to cost $1,200–$1,800 when it arrives in 2028.The Verge: “According to the publication's Microsoft insiders, the next Xbox is projected to cost between $1,200 and $1,800 when it arrives in 2028.”
Partly supportedSkepticism is mounting over the projected price.The Verge: “My first reaction: The next Xbox is dead on arrival. It's DOA. ... "I wouldn't release it at all," former Microsoft exec Mike Ybarra recently said .”
Not in the sourcesThe source identifies Sean Hollister as the person making the remarks about the Xbox being dead on arrival.The Verge
SupportedThe next Xbox is “dead on arrival” at the projected price.The Verge: “My first reaction: The next Xbox is dead on arrival. It's DOA.”
SupportedMicrosoft could not charge that much if it wanted the next generation to succeed.The Verge: “It couldn't possibly charge that much money if it wants next gen to be a success.”
SupportedFormer Microsoft executive Mike Ybarra said, “I wouldn’t release it at all.”The Verge: “"I wouldn't release it at all," former Microsoft exec Mike Ybarra recently said .”
Not in the sourcesNeither Microsoft nor The Verge indicated whether Microsoft had set a final price or whether the range was an internal estimate.
Not in the sourcesThe report did not include comment from Microsoft.
Partly supportedHollister questioned whether Phil Spencer had acknowledged that people would not pay that much.The Verge: “Didn't Microsoft already say out loud that it knows people won't pay that much? Didn't old Xbox boss Phil Spencer say”
Not in the sourcesThe report follows a broader industry trend of rising console prices.
Not in the sourcesSony’s PlayStation 5 Pro launched in 2024 at $699.
Not in the sourcesStandard console prices have climbed steadily this generation.