A recent report has shed light on Microsoft's ambitious plans for its video game hardware, revealing a full next-generation Xbox expected in 2027 and an Xbox-branded gaming handheld slated for release in late 2025. Windows Central has detailed a partner PC gaming handheld, codenamed Keenan, scheduled for a late 2025 launch, and a successor to the Xbox Series X and S that is now in full production and set to debut in two years.
Microsoft has yet to officially comment on these developments. However, its gaming executives have hinted at these devices 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 developed by original equipment manufacturers (OEMs) such as Asus, Lenovo, and Razer. It’s worth noting that Keenan is distinct from a first-party Xbox handheld, which Phil Spencer, Microsoft's gaming chief, suggested is still years away.
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Windows Central reports that the next-gen Xbox, fully approved by Microsoft CEO Satya Nadella, will be a premium successor to the Xbox Series X. This upcoming console, along with a first-party Xbox gaming handheld and new controllers, is set to complete Microsoft’s console lineup by 2027. Notably, Microsoft appears to have no plans for a direct next-gen successor to the less powerful Xbox Series S, possibly intending for the handheld to fill the niche of a more affordable, less powerful option.
The next-gen Xbox is expected to resemble a PC more than any previous Xbox, with support for third-party storefronts like Steam, the Epic Games Store, and GOG. Backwards compatibility will continue to be a feature. Last year, Xbox president Sarah Bond emphasized Microsoft's commitment to the next generation of hardware, promising "the biggest technological leap ever in a generation."
Amidst the broader context of the console industry, there is significant speculation about its future. The Xbox Series X and S are struggling in the ongoing ‘console war,’ while Sony has indicated that the PlayStation 5 is nearing the second half of its lifecycle. Nintendo is preparing to launch the Switch 2 later this year, yet concerns persist about the sustainability of the traditional video game console market.
Phil Spencer has noted in interviews that the console market has not seen meaningful growth in recent years, with a sizable yet static customer base primarily focused on a few major games. Last year, former Xbox executive Peter Moore told IGN that Microsoft was likely debating the future of consoles. This latest report suggests that Microsoft remains committed to the console market, believing in its continued relevance and potential for growth.
