Microsoft reportedly reconsiders Project Helix’s open console strategy

Microsoft's plan to make Xbox a more open gaming platform could come with an unexpected downside. While support for storefronts like Steam would give Project Helix a major advantage over Sony's rumored PS6, a new report suggests that level of openness could also drive the console's price significantly higher.

According to Windows Central's Jez Corden, Microsoft is still weighing just how open its next-generation Xbox should be. Xbox CEO Asha Sharma has repeatedly described Project Helix as an "open ecosystem," but she has stopped short of confirming whether that includes Steam or other third-party PC storefronts.

The idea isn't new. Former Xbox boss Phil Spencer often spoke about the benefits of a hybrid PC-console experience and welcomed the idea of competing marketplaces on Xbox hardware. However, he rarely mentioned Steam specifically. Sharma has been even more cautious, recently telling Game File's Stephen Totilo that no decision has been made regarding Valve's storefront.

The biggest issue appears to be money rather than technology. Corden says Microsoft is already dealing with rising hardware costs caused by the ongoing memory shortage. Even after another Xbox Series X|S price increase expected on August 1, the company is reportedly still losing around $150 (€129 / £111) on every console sold. If Microsoft chooses not to heavily subsidize Project Helix, the new system could reportedly launch at well over $1,000 (€860 / £742).

Opening Xbox to competing stores also creates another challenge. While Windows users enjoy buying games from Steam, Epic Games Store, and other marketplaces, Microsoft earns less from software sales when customers shop elsewhere. Corden points to the ROG Xbox Ally as an example, claiming that among users without an Xbox console, only around one in 50 purchases games through the Microsoft Store, with most opting for Steam instead.

That could lead Microsoft to rethink its strategy. One possibility is partnering with select storefronts through revenue-sharing agreements, though convincing Valve to participate may be difficult given Steam's dominant market position. Another option would be offering a premium version of Project Helix with unrestricted access while keeping lower-priced models tied more closely to Microsoft's own ecosystem.

Project Helix isn't expected until 2027, leaving Microsoft plenty of time to finalize its plans. Still, if hardware costs remain elevated and component shortages continue, balancing an open platform with a competitive price may prove to be one of the company's biggest challenges.

As always, for the latest news on Xbox, next-generation consoles, gaming hardware, and developments across the gaming industry, be sure to follow our dedicated hardware coverage.