Next-Gen Xbox Slated for 2027, Xbox Handheld Coming 2025

A recent report has shed light on Microsoft's ambitious plans for its video game hardware, hinting at a full next-generation Xbox launch in 2027 and an Xbox-branded gaming handheld expected to hit the market in late 2025. Windows Central broke the news about a partner PC gaming handheld codenamed Keenan, slated for a 2025 release, and confirmed that a successor to the Xbox Series X and S is currently in full production and set to launch in two years.

Microsoft has not officially responded to the report, but its gaming executives have hinted at these developments in various interviews. In January, Jason Ronald, Microsoft’s VP 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 worth noting that Keenan is not a first-party Xbox handheld, as Microsoft gaming boss Phil Spencer has indicated that a true Xbox handheld is still years away.

Xbox Games Series Tier List

Windows Central also reported that the next-gen Xbox has received full approval from Microsoft CEO Satya Nadella. This upcoming console is poised to be a premium successor to the Xbox Series X. Alongside a first-party Xbox gaming handheld and new controllers, these devices are expected to complete Microsoft’s console lineup by 2027. There are indications that Microsoft may not plan a direct next-gen successor for the less powerful Xbox Series S, possibly positioning the handheld to serve the market for more affordable, less powerful gaming options.

The next-gen Xbox is anticipated to resemble a PC more than any previous Xbox, with support for third-party storefronts such as Steam, the Epic Games Store, and GOG. Backwards compatibility is expected to continue seamlessly.

Last year, Xbox president Sarah Bond emphasized Microsoft's commitment to advancing its next-generation hardware, promising the largest technological leap in console history.

The future of video game consoles is a subject of much debate. Both the Xbox Series X and S are struggling in the ongoing 'console war,' while Sony has hinted that the PlayStation 5 is entering the latter part of its lifecycle. Nintendo is gearing up to release the Switch 2 later this year, amidst growing concerns about the sustainability of traditional video game consoles.

Phil Spencer has noted in interviews that the console market has not seen significant growth recently, maintaining a sizable but stagnant customer base that predominantly plays a few major titles, leaving less room for other games. Last year, former Xbox executive Peter Moore told IGN that Microsoft was likely deliberating on the future viability of consoles.

This latest report suggests that Microsoft is firmly committed to the future of consoles, signaling a strategic push forward in their gaming hardware offerings.