A new report reveals Microsoft's ambitious plans for the future of video game hardware. The report claims a next-generation Xbox console, slated for release in 2027, is currently in full production. Furthermore, an Xbox-branded handheld gaming device is expected to launch later in 2025.
Windows Central, the source of this report, refers to the handheld as "Keenan," a partner PC gaming handheld. While Microsoft remains silent on these claims, their executives have alluded to similar plans in past interviews. In January, Jason Ronald, Microsoft's VP of 'Next Generation,' discussed combining Xbox and Windows experiences for PC gaming handhelds produced by OEMs (original equipment manufacturers) like Asus, Lenovo, and Razer. Importantly, Keenan is distinct from a first-party Xbox handheld, a device Phil Spencer, Microsoft's gaming boss, has previously stated is still years away.
The next-generation Xbox, reportedly approved 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, is expected to complete Microsoft's 2027 console offering. The report suggests no direct successor to the Xbox Series S is planned, possibly indicating the handheld will 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 retaining backwards compatibility. This aligns with Xbox president Sarah Bond's statement last year about Microsoft's focus on 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 are facing challenges in the market, and Sony has hinted at the PlayStation 5 entering its latter half of its lifecycle. While Nintendo prepares for the Switch 2 launch later this year, concerns exist about the traditional console market's viability. Phil Spencer has acknowledged the console market's stagnant growth, citing a large but unchanging customer base focused on a few major titles. Peter Moore, a former Xbox executive, even suggested Microsoft might have questioned the future of consoles.
This latest report, however, indicates Microsoft's belief in the continued relevance of consoles, with significant investment in both a next-generation console and a dedicated handheld device.
