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 expected later in 2025.

Windows Central reports on a partner PC gaming handheld, codenamed "Keenan," targeting a late 2025 release. Simultaneously, a successor to the Xbox Series X and S is reportedly in full production, with a launch planned for 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 Phil Spencer, Microsoft's gaming boss, has indicated is still years away.

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, is expected to complete Microsoft's 2027 console offering. This suggests no direct successor to the 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 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 facing challenges in the market, and Sony has hinted that the PlayStation 5 is nearing the midpoint of its lifecycle. While Nintendo is preparing the Switch 2, concerns persist about the traditional console market's viability.

Spencer has acknowledged the console market's stagnant growth in recent years, citing a large but unchanging customer base focused on a few major titles. Last year, former Xbox executive Peter Moore told IGN that Microsoft would likely be evaluating the future of consoles.

This latest report suggests Microsoft's decision: the console, at least for them, is far from dead.