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

A recent report has shed light on Microsoft's ambitious plans for its video game hardware, revealing intentions to launch a next-generation Xbox in 2027 and an Xbox-branded gaming handheld in late 2025. Windows Central has detailed a partner PC gaming handheld codenamed "Keenan," expected to hit the market by the end of 2025, alongside a fully-in-production successor to the Xbox Series X and S slated for release in two years.

Although Microsoft has not officially commented on these specifics, 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) like Asus, Lenovo, and Razer. However, it's important to note that Keenan is not a first-party Xbox handheld, as Phil Spencer, Microsoft's gaming chief, has suggested that a first-party device is still years away.

The next-gen Xbox, reportedly greenlit by Microsoft CEO Satya Nadella, is expected to be a premium successor to the Xbox Series X. This console, along with a first-party Xbox gaming handheld and new controllers, is set to complete Microsoft's console lineup by 2027. Interestingly, there are no plans for a direct next-gen successor to the less powerful Xbox Series S, hinting that Microsoft may position its handheld to fill this market segment.

Windows Central suggests that the next-gen Xbox will resemble a PC more than any previous Xbox model, supporting third-party storefronts like Steam, the Epic Games Store, and GOG, while ensuring continued backwards compatibility.

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

Amidst these developments, the future of consoles remains a topic of speculation. The Xbox Series X and S are struggling in the ongoing 'console war,' and Sony has indicated that the PlayStation 5 is entering the second half of its life cycle. Meanwhile, Nintendo is gearing up to launch the Switch 2 later this year, raising concerns about the viability of the traditional video game console market.

Phil Spencer has noted the stagnant growth in the console business, where a limited number of massive games dominate, leaving less room for other titles. Former Xbox executive Peter Moore also questioned the future of consoles in an interview with IGN last year. Despite these concerns, Microsoft's latest plans suggest a firm belief in the continued relevance of consoles.

Xbox Games Series Tier List