A recent report has shed light on Microsoft's ambitious plans for its video game hardware, revealing that a full next-generation Xbox is slated for release in 2027, alongside an Xbox-branded gaming handheld expected to launch in late 2025. According to Windows Central, the handheld, codenamed "Keenan," is in development for a late 2025 release, while the next-gen Xbox, a successor to the Xbox Series X and S, is already in full production and set to debut in two years.
Microsoft has yet to officially comment on these reports. However, its gaming executives have hinted at these developments in various interviews. In January, Jason Ronald, Microsoft’s Vice President of ‘Next Generation,’ spoke to The Verge about merging Xbox and Windows experiences for PC gaming handhelds manufactured by third-party OEMs like Asus, Lenovo, and Razer. Notably, "Keenan" is not a first-party Xbox handheld, as Microsoft gaming boss Phil Spencer has suggested that such a device is still years away.
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The next-gen Xbox has reportedly received full approval from Microsoft CEO Satya Nadella. This premium console is expected to be a significant upgrade from the Xbox Series X and will be accompanied by a first-party Xbox gaming handheld and new controllers, completing Microsoft's console lineup by 2027. It appears that Microsoft will not be releasing a direct next-gen successor to the Xbox Series S, potentially positioning the handheld to fill the role of a more affordable, less powerful option.
Windows Central suggests that the new Xbox will resemble a PC more than any previous Xbox model and will support third-party storefronts like Steam, the Epic Games Store, and GOG. Backwards compatibility is also expected to continue seamlessly.
Last year, Xbox president Sarah Bond emphasized Microsoft's commitment to the next generation of hardware, stating that they are "moving full speed ahead on our next generation hardware, focused on delivering the biggest technological leap ever in a generation."
The future of the console market remains uncertain. The Xbox Series X and S are struggling in the so-called 'console war,' while Sony has indicated that the PlayStation 5 is entering the latter half of its lifecycle. Nintendo, on the other hand, is preparing to launch the Switch 2 later this year, amid growing concerns about the viability of traditional video game consoles.
Phil Spencer has noted in interviews that the console market has not seen significant growth in recent years, with a static customer base increasingly focused on a few major titles. This leaves less room for smaller games. Last year, former Xbox executive Peter Moore told IGN that Microsoft would be contemplating the future of consoles.
Based on the latest report, it appears that Microsoft remains committed to the console market and is planning significant advancements in its hardware offerings.
