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 reports on a partner PC gaming handheld, codenamed "Keenan," expected in late 2025. Simultaneously, a successor to the Xbox Series X and S is reportedly in full production, with a launch planned two years later.
While Microsoft hasn't officially commented, gaming executives have alluded to these devices in past interviews. In January, Jason Ronald, Microsoft's VP of Next Generation, told The Verge about plans to integrate Xbox and Windows experiences for PC gaming handhelds produced by original equipment manufacturers (OEMs) like Asus, Lenovo, and Razer. Importantly, "Keenan" is distinct from a first-party Xbox handheld, which Microsoft's Phil Spencer previously indicated was 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, will reportedly complete Microsoft's 2027 console offering. 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 previous iterations, supporting third-party storefronts like Steam, the Epic Games Store, and GOG, while maintaining backwards compatibility.
Xbox president Sarah Bond previously 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 reportedly struggling in the market, and Sony hints the PlayStation 5 is nearing the midpoint of its lifecycle. While Nintendo's Switch 2 is expected later this year, concerns remain about the traditional console market's viability.
Phil Spencer has noted the lack of significant console market growth in recent years, citing a large but stagnant customer base focused on a few major titles. Last year, former Xbox executive Peter Moore told IGN that Microsoft would have been evaluating the future of consoles.
This latest report suggests Microsoft's answer is a resounding "yes."
