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 expected later in 2025.

Windows Central reported on a partner PC gaming handheld, codenamed "Keenan," targeting a late 2025 release. Simultaneously, a successor to the Xbox Series X and S is reportedly in full production, with a launch planned for two years later.

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

The next-gen Xbox, reportedly greenlit by CEO Satya Nadella, is described as a premium successor to the Xbox Series X. This console, along with a first-party Xbox handheld and new controllers, will reportedly complete Microsoft's 2027 console offering. This suggests no direct successor to the Xbox Series S is planned, perhaps with the handheld filling the budget-friendly market segment.

Windows Central anticipates the next-gen Xbox will be more PC-like than its predecessors, supporting third-party storefronts such as Steam, the Epic Games Store, and GOG, while maintaining backwards compatibility.

Last year, Xbox president Sarah Bond emphasized Microsoft's commitment to "delivering the biggest technological leap ever in a generation" with their next-generation hardware.

The future of consoles is a subject of much debate. The Xbox Series X and S have reportedly struggled in the console market, and Sony has indicated the PlayStation 5 is nearing the midpoint of its lifecycle. While Nintendo's Switch 2 is expected later this year, concerns exist about the traditional console market's viability.

Phil Spencer has acknowledged the lack of significant growth in the console market in recent years, citing a large but static customer base focused on a few major titles. Last year, former Xbox executive Peter Moore even suggested Microsoft might have been questioning the future of consoles.

This latest report, however, indicates Microsoft's continued belief in the console market's future.