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

A new report reveals Microsoft's ambitious plans for its video game hardware lineup. The report alleges a next-generation Xbox console, slated for release in 2027, is currently in full production. Furthermore, an Xbox-branded handheld gaming device is expected to launch later in 2025.

Windows Central, citing sources, reported on a partner PC gaming handheld codenamed "Keenan," targeting a late 2025 release. This device is distinct from a first-party Xbox handheld, which Microsoft's Phil Spencer previously indicated was still years away. The report also details a premium next-generation Xbox console, a successor to the Xbox Series X, fully approved by Microsoft CEO Satya Nadella. This next-gen console, along with a first-party Xbox handheld and new controllers, is projected to complete Microsoft's console offerings by 2027. The report suggests no direct successor to the Xbox Series S is planned, possibly positioning the handheld to fill that market segment.

Microsoft has not yet officially commented on these claims, although gaming executives have alluded to similar plans in past interviews. In January, Jason Ronald, Microsoft's VP of 'Next Generation,' discussed combining Xbox and Windows experiences for PC gaming handhelds produced by OEMs (Asus, Lenovo, Razer, etc.).

The upcoming next-gen Xbox is expected to be more PC-like than previous iterations, potentially supporting third-party storefronts such as Steam, the Epic Games Store, and GOG, while maintaining backwards compatibility. This aligns with Xbox president Sarah Bond's previous statement about Microsoft's commitment to delivering "the biggest technological leap ever in a generation" with its next-generation hardware.

The future of the console market is subject to much speculation. With the Xbox Series X and S facing challenges and Sony indicating the PlayStation 5 is nearing the midpoint of its lifecycle, there's growing concern about the traditional console business model. Phil Spencer has acknowledged the lack of significant growth in the console market in recent years, citing a large but stagnant customer base focused on a limited number of blockbuster titles. Despite these challenges, this report suggests Microsoft remains committed to the console market.