MICROSOFT’S Xbox division has confirmed it’s working on a new console, code-named Project Helix, BBC News reported.

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.

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.

There was no mention of price - something that remains a big concern as prices of vital RAM and storage devices used in hundreds of electronic devices continue to climb.

The component shortage will also raise questions about a likely release date, especially after Valve, the company behind PC games store Steam, had to revise plans to launch its own hybrid PC-console early this year.

It’s also possible that Microsoft may leave manufacturing the device to another company, as it did with last year’s Xbox-branded handheld console built by hardware company ROG.

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

Published in Dawn, March 7th, 2026