Next-Gen Xbox Slated for 2027, Xbox Handheld Coming 2025

A recent report has shed light on Microsoft's ambitious plans for its video game hardware, revealing that a next-generation Xbox console is slated for release in 2027, alongside an Xbox-branded gaming handheld expected to hit the market in late 2025. According to Windows Central, the handheld, codenamed Keenan, is targeted for a late 2025 launch, while the successor to the Xbox Series X and S is now in full production and scheduled for a debut in two years.

While Microsoft has not officially responded to these claims, its gaming executives have hinted at such developments in various interviews. In January, Jason Ronald, Microsoft’s Vice President of 'Next Generation,' told The Verge that the company aims to integrate Xbox and Windows experiences for PC gaming handhelds developed by original equipment manufacturers (OEMs) such as Asus, Lenovo, and Razer. However, Keenan is not a first-party Xbox handheld, as Phil Spencer, Microsoft's gaming chief, suggested that a true Xbox handheld is still years away.

Windows Central also reported that the next-gen Xbox, fully approved by Microsoft CEO Satya Nadella, will be a premium successor to the Xbox Series X. This console, along with a first-party Xbox gaming handheld and new controllers, is expected to complete Microsoft's console lineup by 2027. Notably, there are no plans for a direct next-gen successor to the less powerful Xbox Series S, hinting that the handheld might fill the role of a more affordable gaming option.

The upcoming Xbox is anticipated to be more akin to a PC than any previous Xbox model, supporting third-party storefronts like Steam, the Epic Games Store, and GOG, while continuing to offer backwards compatibility. Last year, Xbox president Sarah Bond emphasized Microsoft's commitment to making a significant technological leap with their next-generation hardware.

Amidst speculation about the future of gaming consoles, the Xbox Series X and S are struggling in the 'console war,' with Sony indicating that the PlayStation 5 is nearing the second half of its lifecycle. Meanwhile, Nintendo is set to launch the Switch 2 later this year, amidst growing concerns about the sustainability of traditional console businesses.

Phil Spencer has noted that the console market has not seen significant growth, with a stable but unchanging customer base primarily focused on a few major titles. Last year, former Xbox executive Peter Moore speculated to IGN about the long-term viability of consoles. However, based on the latest reports, it appears Microsoft remains committed to the console market and sees a future in it.