Full Next-Gen Xbox Reportedly Set for 2027, Xbox-Branded Gaming Handheld Due Out Later in 2025

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 reported on a partner PC gaming handheld, codenamed "Keenan," expected for late 2025, and a fully-fledged successor to the Xbox Series X and S, scheduled for release in two years.

While Microsoft hasn't officially commented, its gaming executives have alluded to these devices in various interviews. In January, Jason Ronald, Microsoft's VP of Next Generation, told The Verge about plans to integrate Xbox and Windows experiences in PC gaming handhelds from original equipment manufacturers (OEMs) like Asus, Lenovo, and Razer. Importantly, "Keenan" is distinct from a first-party Xbox handheld, which Phil Spencer, Microsoft's gaming boss, indicated is still years away.

The next-gen Xbox, according to Windows Central, has received the green light from Microsoft CEO Satya Nadella. This premium successor to the Xbox Series X, along with a first-party Xbox handheld and new controllers, will reportedly complete Microsoft's 2027 console offering. This suggests no direct next-gen successor to the Xbox Series S is planned; perhaps Microsoft anticipates its handheld will fill that market niche.

Windows Central anticipates the next-gen Xbox will be more PC-like than previous iterations, supporting third-party storefronts such as Steam, the Epic Games Store, and GOG, while maintaining 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 subject to much speculation. The Xbox Series X and S are facing challenges in the console market, and Sony has hinted that the PlayStation 5 is nearing the midpoint of its lifecycle. While Nintendo is preparing to launch the Switch 2 later this year, concerns are rising about the traditional video game console market's sustainability.

Spencer has acknowledged the console market's stagnant growth in recent years, citing a large but unchanging customer base focused on a few major titles, leaving limited space for other games. Last year, former Xbox executive Peter Moore told IGN that Microsoft would likely have been discussing the future viability of consoles.

This latest report indicates Microsoft's decision: the console's future is, indeed, in their plans.