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 arriving later in 2025.
Windows Central, citing sources, details a partner PC gaming handheld codenamed "Keenan," expected in late 2025. Simultaneously, a successor to the Xbox Series X and S is reportedly in full production, with a 2027 launch.
While Microsoft hasn't officially commented, statements from gaming executives hint at these developments. In January, Jason Ronald, Microsoft's VP of Next Generation, discussed combining Xbox and Windows experiences for PC gaming handhelds from OEMs (Asus, Lenovo, Razer, etc.). Crucially, "Keenan" is distinct from a first-party Xbox handheld, which Phil Spencer previously indicated is further off.
The next-gen Xbox, reportedly approved by CEO Satya Nadella, is positioned as a premium successor to the Xbox Series X. This console, along with a first-party Xbox handheld and new controllers, will complete Microsoft's 2027 console lineup. The absence of a direct Series S successor suggests the handheld might fill that market segment.
Windows Central anticipates a more PC-like next-gen Xbox, supporting third-party storefronts like Steam, the Epic Games Store, and GOG, while maintaining backward compatibility.
Xbox president Sarah Bond previously 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 uncertain. The Xbox Series X and S are facing challenges, and Sony hints at the PlayStation 5 nearing its lifecycle midpoint. While Nintendo prepares for the Switch 2, concerns exist about the traditional console market's viability.
Spencer has acknowledged the console market's stagnant growth, citing a large but unchanging customer base focused on a few major titles. Peter Moore, a former Xbox executive, even suggested Microsoft internally debated the console's future.
This report indicates Microsoft's continued commitment to the console market.
