Full Next-Gen Xbox Reportedly Set for 2027, Xbox-Branded Gaming Handheld Due Out Later in 2025

A new report details Microsoft's ambitious video game hardware plans, revealing 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," in development for late 2025, and a next-generation Xbox Series X/S successor currently in full production, launching two years later.

While Microsoft hasn't officially commented, its gaming executives have alluded to these devices in various 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 from original equipment manufacturers (OEMs) like Asus, Lenovo, and Razer. Importantly, "Keenan" is distinct from a first-party Xbox handheld, which Microsoft gaming boss Phil Spencer previously indicated is still years away.

The next-gen Xbox, reportedly greenlit by Microsoft 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 Microsoft may not directly succeed the less powerful Xbox Series S, perhaps positioning its handheld to fill that market segment.

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

Last year, Xbox president Sarah Bond stated Microsoft was "moving full speed ahead on our next generation hardware, focused on delivering the biggest technological leap ever in a generation."

The future of consoles is widely debated. The Xbox Series X and S are reportedly struggling in the market, and Sony has hinted that the PlayStation 5 is nearing the midpoint of its lifecycle. While Nintendo is poised to release the Switch 2 later this year, concerns are rising about the traditional console market's viability.

Spencer has noted the lack of significant console market growth in recent years, citing a large but stagnant customer base focused on a few major titles, leaving little room for other games. Last year, former Xbox executive Peter Moore told IGN that Microsoft would have been considering the future of consoles.

This latest report suggests Microsoft's answer is a resounding "yes."