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 roadmap, pointing towards a next-generation Xbox console launching in 2027 and an Xbox-branded handheld gaming device arriving later in 2025.

Windows Central reported on a partner PC gaming handheld, codenamed "Keenan," slated for a late 2025 release. Simultaneously, a successor to the Xbox Series X and S is reportedly in full production, targeting a 2027 launch.

While Microsoft hasn't officially commented, its gaming executives have hinted at 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 manufactured by OEMs (Asus, Lenovo, and Razer being examples). It's important to note that "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, alongside 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, potentially positioning the handheld to fill that market segment.

Windows Central anticipates the next-gen Xbox will be more PC-like than its predecessors, supporting third-party storefronts like 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 a topic of much debate. With the Xbox Series X and S facing challenges in the market, and Sony hinting at the PlayStation 5 entering its latter half of its life cycle, the traditional console market faces uncertainty. While Nintendo plans a Switch 2 launch later this year, concerns remain about the console business model's long-term viability.

Spencer has acknowledged the lack of significant growth in the console market in recent years, citing a large but stagnant customer base primarily focused on a few major titles. Last year, former Xbox executive Peter Moore told IGN that Microsoft would have been internally evaluating the future of consoles.

This latest report suggests Microsoft has decided the console's future is far from over.