A recent report has shed light on Microsoft's ambitious plans for its video game hardware, revealing that a next-generation Xbox is slated for release in 2027, and an Xbox-branded gaming handheld is expected to launch in late 2025. According to Windows Central, the handheld, codenamed Keenan, is currently in development for a 2025 release, while the next-gen Xbox, a direct successor to the Xbox Series X and S, is now in full production and scheduled for a 2027 debut.
While Microsoft has not officially responded to the report, its gaming executives have hinted at these projects in various interviews. Jason Ronald, Microsoft’s VP of 'Next Generation,' discussed plans to integrate Xbox and Windows experiences for PC gaming handhelds developed by OEMs like Asus, Lenovo, and Razer. However, Keenan is not a first-party Xbox handheld; Phil Spencer, Microsoft's gaming boss, suggested that a true Xbox handheld is still years away.
### Xbox Games Series Tier ListXbox Games Series Tier List
Windows Central further disclosed that the next-gen Xbox has received full approval from Microsoft CEO Satya Nadella. This premium console, set to launch in 2027, will be accompanied by a first-party Xbox gaming handheld and new controllers, completing Microsoft's console lineup. Notably, there are no plans for a direct successor to the less powerful Xbox Series S, suggesting that the upcoming handheld might fill the niche for a more affordable, less powerful console option.
The next-gen Xbox is expected to be more akin to a PC than any previous Xbox, with support for third-party storefronts like Steam, the Epic Games Store, and GOG, alongside continued backward compatibility. Last year, Xbox president Sarah Bond emphasized Microsoft's commitment to making a significant technological leap with their next generation hardware.
Amidst these developments, the future of traditional video game consoles remains a topic of intense speculation. Both the Xbox Series X and S are struggling in the 'console war,' while Sony has indicated that the PlayStation 5 is nearing the second half of its lifecycle. Nintendo is poised to release the Switch 2 later this year, yet there's growing concern about the viability of the console market. Phil Spencer has noted that the console industry has not grown significantly in recent years, with a large but static customer base increasingly focused on a few major games. This stagnation has led to discussions within Microsoft, as former Xbox executive Peter Moore suggested last year, about the long-term future of consoles.
The latest report, however, indicates that Microsoft remains committed to the console business, signaling a strong belief in its future.
