Microsoft Unveils 'Return of Xbox' with Cross-Compatible Console

New 'Project Helix' console will play both Xbox and PC games, countering claims Xbox is being 'sunsetted'

Published on Mar. 5, 2026

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In a surprise announcement, Microsoft's newly appointed Gaming CEO Asha Sharma confirmed the 'return of Xbox' with its fifth-generation 'Project Helix' console, which will be compatible with both Xbox and personal computer (PC) games. This announcement comes after recent skepticism from an Xbox co-creator who believed the Xbox consoles were being 'sunsetted' as Microsoft prioritized investments in artificial intelligence (AI).

Why it matters

The announcement of Project Helix counters claims that Microsoft is phasing out the Xbox console business, signaling a renewed commitment to the gaming platform. This cross-compatibility between Xbox and PC games could help revive Xbox's hardware sales, which have seen significant declines in recent years.

The details

Project Helix, the code name for Microsoft's next-generation console, will 'lead in performance and play your Xbox and PC games,' according to Sharma. This follows years of declining Xbox hardware revenue, with year-over-year declines of 29% in Q1 2026 and 22% in Q4 2025. Microsoft initially released the Xbox in 2001, and has since seen three additional generations, with the latest being the Xbox Series S and Series X in 2020.

  • Microsoft announced Project Helix, the code name for its next-generation console, on March 5, 2026.
  • The Xbox Series S and Series X were released in 2020.

The players

Asha Sharma

The newly appointed Gaming CEO of Microsoft who confirmed the 'return of Xbox' with the Project Helix console.

Seamus Blackley

The co-creator of the Xbox who claimed the gaming console is no longer a priority for Microsoft, with the company 'sunsetted' the Xbox business to focus on artificial intelligence (AI).

Satya Nadella

The CEO of Microsoft who has made significant investments in artificial intelligence (AI), according to Blackley.

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What they’re saying

“Great start to the morning with Team Xbox, where we talked about our commitment to the return of Xbox including Project Helix, the code name for our next generation console. Project Helix will lead in performance and play your Xbox and PC games.”

— Asha Sharma, Gaming CEO, Microsoft (Twitter)

“[Microsoft CEO] Satya Nadella has made an incredible number of bets and invested an incredible amount of money and credibility in the transform model AI future. Xbox, like a lot of businesses that aren't the core AI business, is being sunsetted. They don't say that, but that's what's happening.”

— Seamus Blackley, Xbox Co-Creator (KTLA 5)

What’s next

No clear next steps were provided in the source article.

The takeaway

Microsoft's announcement of the 'Project Helix' console, which will be compatible with both Xbox and PC games, counters claims that the company is phasing out the Xbox platform. This move signals a renewed commitment to the gaming business and could help revive Xbox's struggling hardware sales.