A recent report has shed light on Microsoft's ambitious plans for its video game hardware, hinting at a full next-generation Xbox release in 2027 and an Xbox-branded gaming handheld slated for late 2025. According to Windows Central, a partner PC gaming handheld codenamed "Keenan" is in development for a late 2025 release, while the successor to the Xbox Series X and S is now "fully" in production and expected to launch in two years.
Microsoft has yet to officially confirm these developments, but its gaming executives have hinted at these projects in various interviews. In January, Jason Ronald, Microsoft's Vice President of 'Next Generation,' shared with The Verge that the company intends to merge Xbox and Windows experiences for PC gaming handhelds produced by original equipment manufacturers (OEMs) like Asus, Lenovo, and Razer. Notably, "Keenan" is not a first-party Xbox handheld, which Phil Spencer, Microsoft's gaming chief, has indicated is still years away.
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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, along with a first-party Xbox gaming handheld and new controllers, is expected to complete Microsoft's console lineup by 2027. It appears that Microsoft may not plan a direct next-generation follow-up to the less powerful Xbox Series S, possibly intending for the handheld to fill that role in the market.
The next-gen Xbox is rumored to resemble a PC more than any previous Xbox model, with support for third-party storefronts such as Steam, the Epic Games Store, and GOG. Continued backwards compatibility is also anticipated. Last year, Xbox president Sarah Bond stated that Microsoft is "moving full speed ahead on our next generation hardware, focused on delivering the biggest technological leap ever in a generation."
The future of traditional video game consoles is a topic of much debate. Both the Xbox Series X and S are struggling in the ongoing '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, amidst concerns that the traditional console market may be under threat.
Phil Spencer has noted that the console market has not seen significant growth in recent years, serving a stable but limited customer base focused on a few major titles. Last year, former Xbox executive Peter Moore questioned the future of consoles in an IGN interview. However, this latest report suggests that Microsoft remains committed to the console market and is planning significant advancements.
