A recent report has shed light on Microsoft's ambitious plans for its video game hardware, suggesting that a next-generation Xbox is slated for release in 2027, with an Xbox-branded gaming handheld expected to hit the market in late 2025. According to Windows Central, a partner PC gaming handheld, codenamed "Keenan," is currently in development for a late 2025 launch, while the successor to the Xbox Series X and S is now "fully" in production and scheduled for release in two years.
Microsoft has not officially responded to these claims, but its gaming executives have hinted at these developments in various interviews. In January, Jason Ronald, Microsoft's VP of 'Next Generation,' discussed with The Verge the company's intention to merge Xbox and Windows experiences for PC gaming handhelds produced by original equipment manufacturers (OEMs) such as Asus, Lenovo, and Razer. However, it's important to note that Keenan is not a first-party Xbox handheld; Phil Spencer, Microsoft's gaming chief, has suggested that a true Xbox handheld is still several years away.
Xbox Games Series Tier List
Xbox Games Series Tier List
Windows Central also reported that the next-gen Xbox, which has been fully approved by Microsoft CEO Satya Nadella, will be a premium successor to the Xbox Series X. Alongside a first-party Xbox gaming handheld and new controllers, this console is expected to complete Microsoft's console lineup by 2027. There is speculation that Microsoft may not release a direct next-gen successor to the less powerful Xbox Series S, potentially positioning the handheld to fill the role of a more affordable gaming option.
The upcoming Xbox is rumored to be more akin to a PC than previous Xbox models, supporting third-party storefronts like Steam, the Epic Games Store, and GOG. Backwards compatibility is expected to continue, ensuring a seamless transition for gamers. Last year, Xbox president Sarah Bond emphasized Microsoft's commitment to the next generation of hardware, stating that the company is "moving full speed ahead on our next generation hardware, focused on delivering the biggest technological leap ever in a generation."
The future of video game consoles is a topic of much speculation. The Xbox Series X and S are reportedly struggling in the 'console war,' and Sony has indicated that the PlayStation 5 is entering the second half of its lifecycle. Meanwhile, Nintendo is gearing up to launch the Switch 2 later this year, amid growing concerns that the traditional video game console market may be facing challenges.
Phil Spencer has noted in interviews that the console market has not seen significant growth in recent years, with a large but stagnant customer base primarily engaging with a few massive titles. This leaves less room for other games. Last year, former Xbox executive Peter Moore discussed with IGN the possibility of Microsoft contemplating the future viability of consoles.
However, based on the latest report, it appears Microsoft is firmly committed to the future of consoles and is actively working to innovate within this space.
