We’re here at the 2026 Game Developers Conference, where Microsoft “VP of Next Generation” Jason Ronald is talking about a topic near and dear to many gamers’ hearts: the future of Xbox. Ronald says the next Xbox, codenamed Project Helix, will have a custom AMD chip with “an order of magnitude increase in raytracing performance” up to and including path tracing, and a next-gen version of AMD’s FSR upscaling technology that relies on machine learning and includes frame generation — which can improve the perceived smoothness of a game by imagining new frames between existing ones.

But don’t expect that next Xbox soon: Microsoft will begin sending out “alpha versions” of Project Helix to developers in 2027, Ronald revealed here at GDC.

Ronald also confirmed that Xbox and Windows are getting closer together, beyond the fact that Project Helix will play PC games too. “PC is becoming an increasingly important part of Xbox. We’re bringing the best of Xbox to Windows itself,” says Ronald.

Microsoft is bringing the Xbox mode that originally shipped with the Xbox Ally handheld to more Windows computers “to select markets starting in April,” as well as Advanced Shader Delivery, which precompiles shaders so you can download them alongside a game or its updates, instead of having to wait when you launch a title.

The news follows Microsoft’s recent announcement of the codename for its next-generation console, Project Helix, which the company says will play both console and PC games. That announcement about Helix was made by new Xbox boss Asha Sharma, who took over as Microsoft’s gaming CEO in February. Former Xbox boss Phil Spencer is retiring, and former Xbox president Sarah Bond, who had been seen as a potential successor to Spencer, also announced her departure.

Last year, Bond hinted that the next-generation Xbox would be more like a PC and noted that it would be a “a very premium, very high-end curated experience.” In her first memo since taking over Xbox, Sharma promised a “renewed commitment to Xbox starting with console,” and in her post about Helix, Sharma said the console would “lead in performance.” This week, Sharma also posted a picture of the original Xbox prototype, which Microsoft is showing at the GDC Festival of Gaming. We’ve got pictures.