LOS ANGELES: Microsoft has confirmed that its gaming division is developing a next-generation Xbox console, currently code-named Project Helix, signaling a new phase for the company's gaming hardware strategy.
According to Microsoft, the upcoming console will focus on leading performance while introducing deeper integration between Xbox and PC gaming.
The device is expected to support both Xbox titles and PC games, marking a shift from previous Xbox consoles that primarily ran games designed specifically for the platform.
While details about Project Helix remain limited, Microsoft indicated that more information could be revealed during the upcoming Game Developers Conference in San Francisco.
The announcement comes as Microsoft's gaming business faces challenges. The company reported a 9% decline in gaming revenue and a 32% drop in hardware revenue in its latest earnings report.
However, Microsoft continues to invest heavily in the gaming sector, highlighted by its US$69bil (RM271 trillion) acquisition of Activision Blizzard in 2023 and a strong lineup of upcoming titles, including Fable expected in 2026.
In a post on BlueSky, gaming industry analyst commented that Microsoft's announcement came as little surprise. "This is what Xbox had been talking about doing for months," he wrote, adding that "none of this is new if anyone's been paying attention."
Industry media reports suggest Microsoft is preparing to again rely on AMD hardware for its upcoming console. The next Xbox generation is reported to use the Magnus APU, significantly larger than the AMD Orion APU rumoued to be picked by Sony for the upcoming PlayStation 6. – dpa
