Microsoft (MSFT.US) is reportedly planning to launch a next-generation Xbox handheld device for the 2027 holiday season, followed by a successor model in the 2028 holiday season, with prices ranging from $1,200 to $1,800 unless some form of subsidy is introduced.
Chris Ciaccia, a senior technology analyst at Seeking Alpha, believes this expected price point poses a challenge even for a company of Microsoft's scale. "It's more expensive than some PCs, some laptops," Ciaccia said, adding that such pricing is "a tough pill to swallow even for a company with a balance sheet like Microsoft's." He noted that while both Microsoft and Sony (SONY.US) have historically subsidized console launches to offset manufacturing costs, a handheld priced at $1,200 to $1,800 may require the company to lower specifications or continue efforts to drive down costs.
Looking ahead to Microsoft's upcoming earnings report, Ciaccia said on the podcast that investors will be paying close attention to Azure cloud growth and AI monetization. "Given where the stock price is right now, any growth below the mid-40% range could weigh on the shares," he said. He also emphasized that Microsoft 365 and Copilot need to demonstrate improved monetization relative to AI competitors such as Google's (GOOGL.US) Gemini and Anthropic's Claude.
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