A recent report has shed light on Microsoft’s ambitious plans for its video game hardware, suggesting a full next-generation Xbox is slated for release in 2027, alongside an Xbox-branded gaming handheld expected to hit the market later in 2025. According to Windows Central, Microsoft is currently developing a partner PC gaming handheld codenamed "Keenan" for a late 2025 release, while the successor to the Xbox Series X and S is already in "full" production and set to launch in two years.
Although Microsoft has not officially commented on these reports, its gaming executives have hinted at these developments in various interviews. In January, Jason Ronald, Microsoft’s Vice President of 'Next Generation,' told The Verge that the company aims to integrate Xbox and Windows experiences for PC gaming handhelds produced by original equipment manufacturers (OEMs) such as Asus, Lenovo, and Razer. However, "Keenan" is not a first-party Xbox handheld, as Phil Spencer, Microsoft's gaming boss, indicated that a true Xbox handheld is still years away.
Windows Central reports that the next-gen Xbox has been fully approved by Microsoft CEO Satya Nadella. This premium successor to the Xbox Series X, expected in 2027, will be accompanied by a first-party Xbox gaming handheld and new controllers, completing Microsoft’s console lineup. Notably, Microsoft does not appear to be planning a direct next-gen successor to the less powerful Xbox Series S, possibly reserving that segment for the new handheld.
The upcoming Xbox is anticipated to be more akin to a PC than any previous Xbox, supporting third-party storefronts like Steam, the Epic Games Store, and GOG, while maintaining backward compatibility. Last year, Xbox president Sarah Bond emphasized Microsoft’s commitment to advancing next-generation hardware, promising a significant technological leap.
Amid speculation about the future of consoles, the Xbox Series X and S are struggling in the 'console war,' and Sony has indicated that the PlayStation 5 is entering the latter part of its lifecycle. Meanwhile, Nintendo is preparing to launch the Switch 2 later this year. There is a growing concern that the traditional video game console market may be at risk, with Phil Spencer noting that the console market has not grown significantly, leaving a static customer base focused on a few major games. Former Xbox executive Peter Moore suggested last year that Microsoft might be reevaluating the future of consoles entirely.
However, based on the latest report, it appears that Microsoft remains committed to the console market, signaling a strong belief in its future.
