Next-Gen Xbox & Handheld Console Updates

A new report reveals Microsoft's ambitious video game hardware plans: a next-generation Xbox console slated for 2027 and an Xbox-branded handheld gaming device expected later in 2025.

Windows Central reported on a partner PC gaming handheld, codenamed "Keenan," targeting a late 2025 release. Simultaneously, a successor to the Xbox Series X and S is reportedly in full production, with a launch planned two years later.

While Microsoft hasn't officially commented, gaming executives have alluded to these devices in previous interviews. In January, Jason Ronald, Microsoft's VP of Next Generation, told The Verge about plans to integrate Xbox and Windows experiences into PC gaming handhelds manufactured by OEMs (original equipment manufacturers) like Asus, Lenovo, and Razer. Importantly, "Keenan" is distinct from a first-party Xbox handheld, which Microsoft's Phil Spencer previously indicated was 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. This console, along with a first-party Xbox handheld and new controllers, will supposedly complete Microsoft's 2027 console offering. This suggests no direct successor to the Xbox Series S is planned, perhaps with the handheld filling that market segment.

Windows Central anticipates the next-gen Xbox will be more PC-like than its predecessors, supporting third-party storefronts like Steam, the Epic Games Store, and GOG, while retaining backwards compatibility.

Last year, Xbox president Sarah Bond stated Microsoft was "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 widely debated. The Xbox Series X and S are facing challenges in the market, and Sony has hinted at the PlayStation 5 being in the latter half of its lifecycle. While Nintendo is preparing a Switch 2 launch, concerns are rising about the traditional console market's sustainability.

Spencer has noted the lack of significant growth in the console market in recent years, citing a large but stagnant customer base focused on a few major titles. Last year, former Xbox executive Peter Moore told IGN that Microsoft would likely be considering the future viability of consoles.

This latest report suggests Microsoft's decision: the console lives on.