Next-Gen Xbox Launch Slated for 2027, Handheld in 2025

A recent report has shed light on Microsoft's ambitious plans for its video game hardware, suggesting a next-generation Xbox set for release in 2027 and an Xbox-branded gaming handheld expected to launch later in 2025. According to Windows Central, Microsoft is working on a partner PC gaming handheld codenamed "Keenan," slated for a late 2025 release, and a full next-gen successor to the Xbox Series X and S, which is currently in production and expected in two years.

Although Microsoft has not officially commented on these reports, its gaming executives have hinted at these developments in various interviews. In January, Jason Ronald, Microsoft's VP of 'Next Generation,' told The Verge that the company aims to merge Xbox and Windows experiences for PC gaming handhelds manufactured by third-party OEMs, such as Asus, Lenovo, and Razer. It's important to note that Keenan is not a first-party Xbox handheld, as Microsoft's gaming chief, Phil Spencer, has indicated that such a device is still years away.

Xbox Games Series Tier List

Windows Central also revealed that the next-gen Xbox has been fully approved by Microsoft CEO Satya Nadella. This premium console, expected to be more akin to a PC than any previous Xbox, will support third-party storefronts like Steam, the Epic Games Store, and GOG, and will maintain backwards compatibility. Alongside the new console, Microsoft plans to release a first-party Xbox gaming handheld and new controllers by 2027. Interestingly, there is no mention of a direct next-gen successor to the Xbox Series S, hinting that Microsoft may position its handheld to fill the role of a less powerful, more affordable option.

Last year, Xbox president Sarah Bond emphasized Microsoft's commitment to "moving full speed ahead on our next generation hardware, focused on delivering the biggest technological leap ever in a generation." This statement underscores the company's dedication to pushing boundaries in the gaming industry.

The future of consoles remains a topic of much speculation. The Xbox Series X and S are struggling in the 'console war,' while Sony has hinted that the PlayStation 5 is nearing the second half of its lifecycle. Nintendo is gearing up to launch the Switch 2 later this year, amid concerns that the traditional video game console market could be at risk. Phil Spencer has noted the stagnant growth of the console market, which is increasingly dominated by a few large games, leaving less room for other titles. Former Xbox executive Peter Moore even questioned the future of consoles in an interview with IGN last year.

Despite these challenges, Microsoft's latest plans suggest a firm belief in the future of consoles. By expanding its hardware lineup with a next-gen Xbox and an Xbox-branded gaming handheld, Microsoft aims to redefine the gaming experience and maintain its competitive edge in the industry.