If you thought gaming was getting expensive, here’s some news that’ll make your wallet weep: Microsoft’s next Xbox console could retail for around $1,200 when it launches in 2027.
According to multiple industry insiders and recent comments from Xbox President Sarah Bond, Microsoft is going all-in on the premium market with its next-generation hardware.
Bond recently told Mashable that “the next-gen console is going to be a very premium, very high-end, curated experience.” Translation: start saving now.
But here’s the twist—this won’t be just another game console. According to Windows Central, Microsoft is building a full Windows gaming PC with an Xbox interface on top. That means access to Steam, Epic Games Store, and other PC marketplaces—not just Xbox Game Pass.
Kepler_L2, a hardware leaker on X (formerly Twitter) with a proven track record of accurately leaking AMD console specifications—including being first to reveal PS5 Pro specs that later proved correct—estimates the next Xbox will cost around $1,200. As per his leaked specifications, the console could pack approximately 42% more silicon than the PS6, 20% more memory, and significantly beefier cooling systems—hardware differences that justify the premium price tag.
Moore’s Law Is Dead, a YouTube tech channel known for AMD hardware leaks (and whose PS5 Pro specifications were accurate enough that Sony filed copyright strikes to remove the videos), corroborates this range, placing it between $800 and $1,200.
Why would it be so expensive?
Unlike previous console generations, Microsoft can’t subsidize the hardware by making up profits through exclusive game sales. Since this Xbox will support third-party storefronts where Microsoft doesn’t get a cut, they have to charge closer to actual manufacturing costs.
For comparison, Sony’s PS6 is rumored to launch at $600—exactly half the 2027 Xbox price. It’s worth noting that the current Xbox Series X already costs $649.99 after recent price increases, with the premium 2TB model hitting $799.99.
Reality check for gamers
The internet’s reaction to the rumored price tag is predictable sticker shock.
“Yeah it’s officially over. Call it the Ex-box now,” one user tweeted.
Another tweet summed it up perfectly: “I’ll get it in 2030 when the price drops.”
Fueling this frustration is a year of recent Xbox price hikes: Game Pass subscriptions jumped 50%, console prices increased twice, and even developer kits went from $1,500 to $2,000. Microsoft is clearly repositioning Xbox as a premium brand.
Adding intrigue to the situation, retail giant Costco recently pulled all Xbox consoles from stores and online, calling it a “business decision.” The gaming community suspects that the upcoming price increases influenced that move.
Who’s this console actually for?
Microsoft seems to be targeting PC gaming enthusiasts who want the convenience of consoles with the versatility of PCs. For that niche market, a $1,200 machine that plays everything might make sense. But let’s be real: most gamers—especially parents buying for their kids—won’t drop that kind of cash when the PS6 offers similar experiences for half the price.
The $1,000 ROG Xbox Ally X handheld (which is currently sold out) suggests there’s at least some market for premium Xbox hardware. But a $1,200 console represents a fundamental shift: Xbox is no longer competing for the mainstream market. It’s becoming a premium PC gaming brand that happens to include console features.
The bottom line
Microsoft is making a bold bet that enough wealthy enthusiasts exist to sustain an ultra-premium Xbox brand. They might be right—high-end PC gaming components sell well, after all. But they’re also effectively conceding the mass market to Sony and Nintendo.
Whether this strategy is brilliant or delusional depends on execution and whether Microsoft can justify that price tag. One thing’s certain: the console wars just got a whole lot more expensive.
Microsoft hasn’t officially confirmed pricing yet, so take these reports with appropriate skepticism. But when multiple credible sources, including the Xbox president herself, are talking about “very premium,” it’s worth paying attention.
Sources: Windows Central, Mashable, Sandra Rose