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

A new report reveals Microsoft's ambitious video game hardware plans: a next-generation Xbox console slated for 2027 and an Xbox-branded handheld gaming device arriving later in 2025.

Windows Central, citing sources, details a partner PC gaming handheld codenamed "Keenan," expected in late 2025. Simultaneously, a successor to the Xbox Series X and S, currently in full production, is reportedly launching two years later.

While Microsoft hasn't officially commented, executives have alluded to both devices. In January, Jason Ronald, Microsoft's VP of Next Generation, told The Verge about plans to integrate Xbox and Windows experiences into PC gaming handhelds produced by OEMs (original equipment manufacturers) like Asus, Lenovo, and Razer. Importantly, "Keenan" is distinct from a first-party Xbox handheld, which Phil Spencer, Microsoft's gaming boss, has indicated is further off.

The next-gen Xbox, reportedly greenlit by 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 supposedly complete Microsoft's 2027 console lineup. This suggests no direct successor to the less powerful Xbox Series S is planned, perhaps with the handheld filling that market segment.

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

Last year, Xbox president Sarah Bond emphasized Microsoft's commitment to "delivering the biggest technological leap ever in a generation" with their next-generation hardware.

The future of consoles is widely debated. The Xbox Series X and S are reportedly struggling in the market, and Sony hints that the PlayStation 5 is nearing the midpoint of its lifecycle. While Nintendo's Switch 2 launch is anticipated later this year, concerns exist 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 user base focused on a few major titles. Last year, former Xbox executive Peter Moore told IGN that Microsoft would likely be internally debating the console's future.

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