A recent report has shed light on Microsoft's ambitious plans for its video game hardware lineup, suggesting a full next-generation Xbox console is slated for release in 2027, and an Xbox-branded gaming handheld is expected to hit the market later in 2025. According to Windows Central, a partner PC gaming handheld codenamed "Keenan" is currently in development and anticipated for a late 2025 launch. Additionally, a successor to the Xbox Series X and S, now in full production, is set to debut in two years.
Microsoft has not yet provided an official statement on these reports. However, various gaming executives from the company have hinted at these developments in public interviews. In January, Jason Ronald, Microsoft's Vice President of 'Next Generation,' shared with The Verge that Microsoft 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 important to note that "Keenan" refers to a third-party device, not a first-party Xbox handheld, which Microsoft gaming boss Phil Spencer indicated is still years away.
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Windows Central has reported that the upcoming next-gen Xbox has received full approval from Microsoft CEO Satya Nadella. This premium successor to the Xbox Series X, expected in 2027, will reportedly come alongside a first-party Xbox gaming handheld and new controllers, completing Microsoft's console offerings for that year. Interestingly, Microsoft seems to have no plans for a direct next-gen successor to the less powerful Xbox Series S, possibly positioning the new handheld to fill that niche in the market.
The next-gen Xbox is expected to be more akin to a PC than any previous Xbox console, supporting third-party storefronts such as Steam, the Epic Games Store, and GOG. Backwards compatibility will continue to be a feature, ensuring gamers can enjoy their existing library on the new hardware. Last year, Xbox president Sarah Bond emphasized that Microsoft is "moving full speed ahead on our next generation hardware, focused on delivering the biggest technological leap ever in a generation."
Amidst this news, there's a broader discussion about the future of the console market. The Xbox Series X and S are struggling in the so-called 'console war,' and Sony has hinted that the PlayStation 5 is entering the second half of its lifecycle. Meanwhile, Nintendo is preparing to launch the Switch 2 later this year, raising concerns about the viability of traditional video game consoles.
Phil Spencer has voiced concerns that the console business has not seen significant growth in recent years, with a static customer base primarily focused on a few major games. This situation leaves less room for other titles to thrive. Last year, former Xbox executive Peter Moore discussed with IGN the possibility of Microsoft contemplating the future of consoles. However, the latest report suggests that Microsoft remains committed to the console market and believes in its future.
