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 reports 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 expected two years later.

While Microsoft hasn't officially commented, gaming executives have alluded to these devices in past 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 produced 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 has indicated is further off.

The next-gen Xbox, reportedly greenlit by CEO Satya Nadella, is positioned as a premium successor to the Xbox Series X. This console, alongside a first-party Xbox handheld and new controllers, will complete Microsoft's 2027 console lineup. The report suggests no direct successor to the Xbox Series S is planned, perhaps indicating the handheld will fill that 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 its next-generation hardware.

The future of consoles is a subject of much debate. The Xbox Series X and S are facing challenges in the market, and Sony has hinted at the PlayStation 5 nearing the midpoint of its lifecycle. While Nintendo prepares for the Switch 2 launch later this year, concerns persist about the traditional console market's viability.

Phil Spencer has acknowledged the console market's stagnant growth, characterized by a large but unchanging player base focused on a few major titles. Last year, former Xbox executive Peter Moore even suggested Microsoft internally debated the console's future.

This latest report indicates Microsoft's belief in the enduring relevance of consoles.