A recent report has shed light on Microsoft's ambitious plans for its video game hardware, indicating that a full next-generation Xbox console is slated for release in 2027, and an Xbox-branded gaming handheld is expected to hit the market by the end of 2025. Windows Central revealed details about a partner PC gaming handheld, codenamed Keenan, set for a late 2025 launch, alongside a successor to the Xbox Series X and S, which is already in full production and due out in two years.
While Microsoft has not officially commented on the report, its gaming executives have hinted at these developments in various interviews. In January, Jason Ronald, Microsoft's Vice President of 'Next Generation,' shared with The Verge that the company aims to integrate Xbox and Windows experiences for PC gaming handhelds developed 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; Microsoft's gaming chief, Phil Spencer, has suggested that a true Xbox handheld is still years away.
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Windows Central also reported that the next-gen Xbox has received full approval from Microsoft CEO Satya Nadella. This premium successor to the Xbox Series X is expected to be released alongside a first-party Xbox gaming handheld and new controllers in 2027. Interestingly, there are no plans for a direct next-gen successor to the less powerful Xbox Series S, suggesting that Microsoft may position its handheld as a more affordable, entry-level option.
The next-gen Xbox is anticipated to resemble a PC more closely than any previous Xbox model, with support for third-party storefronts like Steam, the Epic Games Store, and GOG. Backwards compatibility will continue to be a priority. Last year, Xbox president Sarah Bond expressed that Microsoft is "moving full speed ahead on our next generation hardware, focused on delivering the biggest technological leap ever in a generation."
The future of consoles is a topic of much speculation. The Xbox Series X and S are struggling in the 'console war,' and Sony has indicated that the PlayStation 5 is entering the second half of its lifecycle. Meanwhile, Nintendo is preparing to launch the Switch 2 later this year, raising concerns about the sustainability of the traditional video game console market.
Phil Spencer has noted in interviews that the console business has not grown significantly in recent years, maintaining a sizable but stagnant customer base that primarily engages with a few major titles, leaving limited space for other games. Last year, former Xbox executive Peter Moore told IGN that Microsoft might be contemplating the future viability of consoles.
However, based on the latest report, it appears Microsoft remains committed to the console market and is actively planning for its future.
