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.

Ronald says the Microsoft team’s been doing a lot of work behind the scenes to make the Xbox mode “feel distinctly Xbox” and feel the same as you migrate between devices and cloud. He says gamers play 3-5 games at any one time on average, and you should be able to pick up and play whether you’re on console, PC, or cloud.

As we spotted outside the keynote, Microsoft wants game developers to just build once for both Windows and Xbox, instead of building twice for both. It’s creating a unified development environment where “The vast majority of code that your game runs on Xbox is the exact same code that runs on other platforms,” says Ronald.

And while he isn’t promising all games will be this way, Ronald suggests that you won’t have to buy those games multiple times, too: the already-existing Xbox Play Anywhere program lets you buy once and “play on any screen,” he says. The catalog of Xbox Play Anywhere games now has more than 1,500 titles, Ronald says.

As part of the 25th anniversary of Xbox, the the game preservation team will also re-release an unspecified number of older Xbox titles under its Game Preservation program, Ronald says. “As one of the largest publishers in the industry, we feel a deep responsibility to preserve games from the past.” And he hints that “some of our most iconic first-party franchises are returning this year.”

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.

Soon after the Trump administration launched its war on Iran, I called up Reed Blakemore, director of research and programs at the Atlantic Council Global Energy Center, to talk about the consequences. While oil and gas prices were already on the rise, there was still more hope then that the impact of the conflict might be short-lived. At the end of our conversation, Blakemore said plainly: “Let’s have a call again [next week] … We’ll have a much clearer picture of what the conflict is going to look like and what the story really is going to be for energy moving forward.”

It’s a week later and the conflict has only escalated since the US and Israel launched strikes against Iran, killing Supreme Leader Ayatollah ​Ali Khamenei. Energy infrastructure has become a key leverage point in the unfolding war, with Israel hitting Iranian fuel depots and Iran targeting Gulf neighbors’ oil and gas infrastructure in its own strikes. Iran’s paramilitary Revolutionary Guard threatened on Tuesday not to “not allow the export of even a single liter of oil from the region to the hostile side and its partners until further notice.” Iran has reportedly also started to lay mines in the strategic Strait of Hormuz, through which one-fifth of global petroleum consumption and liquefied natural gas (LNG) trade used to move.

I talked to Blakemore again today about what Iran’s continued chokehold on the Strait of Hormuz means for energy costs and US tech companies’ rush to build out energy-hungry AI data centers.

This interview has been edited for length and clarity.

What’s your outlook now on how the conflict is likely to affect oil and gasoline prices?

Reed Blakemore: The fundamental issue right now, in terms of the energy implications of the conflict, is how the market is reacting to the uncertainty around safe passage through the Strait of Hormuz.

At the outset of the conflict when we saw insurance premiums going up for these ships, we were largely talking about it in the context of, Hey, it’s just gotten much more expensive for a ship to traverse the Gulf and therefore they’re staying out.

We’ve moved from that to actual concerns around the security of passing through the straits in the first place, so this is no longer an insurance cost issue as much as it is a safety and security issue.

We have virtually no traffic passing through the Strait of Hormuz. A lot of countries are beginning to shut in production. So there’s already this ripple effect emerging purely because the market and basically tankers are fundamentally concerned about whether or not they will be able to safely pass through the strait.

The other feature that I think we’ve seen the market react strongly to in the past several days is a sense of how long this conflict is going to last. And I think you can look to the comments from the president in the last 72 hours and the market’s reaction as a major piece of evidence to that end. Moving into the weekend where the campaign had clearly escalated, the uncertainty around how open the Strait of Hormuz would or wouldn’t be was beginning to reach a fever pitch. The response from markets when they opened in Asia on Sunday going past $100 a barrel to nearly $120 a barrel is really a function of the market not having a sense that this would be over anytime soon. That pullback that we saw over the course of yesterday was in response to the president saying fundamentally that Hey, we have an end in sight to this conflict.

The United States is a major oil producer. I think the strategy of US energy dominance played a significant role in terms of shielding US consumers from the initial market consequences of the decision to go to war with Iran. The price increases we’ve seen thus far would have been much more responsive to the market volatility. That has bought the administration a little bit of time as it relates to how long until we see the gasoline prices really begin to pick up steam domestically. But as this conflict persists and the volatility in the market continues, we will begin to see upward pressure on gasoline prices, regrettably, over time.

There’s only so much that US energy dominance can do to shield US consumers from what is a globally traded market in terms of oil. Because the United States is a major domestic oil producer, it has the ability to put some downward pressure on its own gasoline prices.

But because via its oil exports it participates in a global market, it has that exposure to global oil market volatility.

Can we expect electricity prices to go up also? Why?

For the United States, the gas story is a little bit better, but not immune from the global market as well. Natural gas is largely regionally traded within the United States. The US is a major producer of natural gas for domestic consumption in a way that further insulates it. That makes the case of the United States much different than the gas price sensitivity we’re seeing in Europe or in Japan or other parts of East Asia.

The problem is similar to the oil story because the United States is a major LNG exporter. As natural gas prices increase elsewhere, LNG exporters will be incentivized to export more gas because that’s where the arbitrage opportunity is, and that will create the upward price pressure domestically in the United States.

What risks does that pose to tech companies and this push to build out more AI data centers and related energy infrastructure?

In the United States, the majority of the data center buildout has begun to be powered by natural gas. We’re not going to see electricity prices reach a crisis point in the United States in the short term because of this conflict. The time horizon that we’re talking about with gas and therefore electricity prices is likely in the time horizon of months rather than weeks you’d expect with oil.

However, the longer this conflict lasts and the more tightness we see in the global gas market — that will eventually permeate the United States and create that upward pressure on gas prices in a way which then affects electricity prices and then that brings the data center question into play.

I think the unique thing is it doesn’t necessarily affect the ability of data centers to purchase energy. Electricity costs are a relatively marginal proportion of the cost of building and operating a data center. What it does do is it only further inflames the energy affordability challenges that are currently deteriorating social license in the country for data centers. So the impact on electricity prices likely won’t directly harm data center buildout. The ancillary affordability challenges it will create will further entrench popular discontent with data center buildout, because data centers are simply making consumer electricity bills much more expensive.