Next-Gen Xbox Launching 2027, Xbox Handheld in 2025

A recent report has shed light on Microsoft's ambitious plans for its video game hardware, hinting at a full next-gen Xbox set to launch in 2027 and an Xbox-branded gaming handheld slated for release in late 2025. According to Windows Central, a partner PC gaming handheld codenamed Keenan is currently in development for a 2025 release, while a successor to the Xbox Series X and S is now in full production and expected to hit the market in two years.

Microsoft has remained silent on these reports, but its gaming executives have hinted at both 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 manufactured by original equipment manufacturers (OEMs) such as Asus, Lenovo, and Razer. Notably, Keenan is not a first-party Xbox handheld, as Microsoft gaming boss Phil Spencer recently indicated that such a device is still years away.

Xbox Games Series Tier List

Windows Central also reported that the next-gen Xbox has been fully approved by Microsoft CEO Satya Nadella. This premium successor to the Xbox Series X, expected in 2027, will be accompanied by a first-party Xbox gaming handheld and new controllers, completing Microsoft’s console lineup. Interestingly, there seems to be no direct next-gen successor planned for the less powerful Xbox Series S, suggesting that Microsoft might position its handheld to fill the niche of a cheaper, less powerful console option.

The next-gen Xbox is anticipated to resemble a PC more closely than any previous Xbox model, supporting third-party storefronts like Steam, the Epic Games Store, and GOG, along with continued backwards compatibility. Last year, Xbox president Sarah Bond emphasized Microsoft's commitment to the next generation of hardware, aiming for the most significant technological leap in console history.

The future of video game consoles is a topic of much speculation. The Xbox Series X and S are struggling in the ongoing ‘console war,’ while Sony has indicated that the PlayStation 5 is entering the latter part of its lifecycle. Meanwhile, Nintendo is preparing to launch the Switch 2 later this year. Concerns are mounting about the sustainability of the traditional console market.

Phil Spencer has noted in interviews that the console market has not seen significant growth in recent years, with a static customer base increasingly focused on a few blockbuster games, which leaves little room for other titles. Last year, former Xbox executive Peter Moore suggested to IGN that Microsoft might be questioning the future of consoles altogether.

However, based on this latest report, it appears Microsoft remains committed to the console business and is actively planning for its future.