Next-Gen Xbox Launching 2027, Xbox Handheld Coming 2025

A recent report sheds light on Microsoft's ambitious plans for its video game hardware, with a full next-generation Xbox expected in 2027 and an Xbox-branded gaming handheld slated for release in late 2025. According to Windows Central, a partner PC gaming handheld, codenamed "Keenan," is currently in development and scheduled for a late 2025 launch. Additionally, a successor to the Xbox Series X and S is reportedly in full production and set to hit the market in two years.

While Microsoft has not officially responded to these claims, 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. It's important to note that Keenan is not a first-party Xbox handheld, as Phil Spencer, Microsoft's gaming chief, suggested that a true Xbox handheld is still years away.

The next-gen Xbox, reportedly greenlit by Microsoft CEO Satya Nadella, is described as a premium successor to the Xbox Series X. Alongside a first-party Xbox gaming handheld and new controllers, this console is expected to complete Microsoft's console lineup in 2027. Notably, there are no plans for a direct next-gen successor to the less powerful Xbox Series S, hinting that Microsoft may position its handheld as a more affordable, less powerful alternative.

Windows Central suggests that the upcoming Xbox will resemble a PC more than any previous Xbox model, supporting third-party storefronts like Steam, the Epic Games Store, and GOG, while continuing to offer backward compatibility. Last year, Xbox president Sarah Bond emphasized Microsoft's commitment to delivering a significant technological leap with their next-generation hardware.

Amidst speculation about the future of the console industry, Xbox Series X and S are reportedly struggling in the 'console war,' and 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. Concerns are mounting about the sustainability of the traditional video game console market, with Phil Spencer noting the lack of growth in the console business and the dominance of a few massive games. Former Xbox executive Peter Moore also questioned the future of consoles last year. However, based on this latest report, it appears Microsoft remains committed to the console space.

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