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 the future of Xbox gaming hardware. The report alleges a next-generation Xbox console, slated for release in 2027, is currently in full production. Additionally, an Xbox-branded handheld gaming device is expected to launch later in 2025.

Windows Central, the source of the report, refers to the handheld as "Keenan," a partner PC gaming handheld. This differs from a previously mentioned first-party Xbox handheld, which Microsoft’s Phil Spencer indicated is still years away. While Microsoft hasn't officially commented, statements from executives align with some aspects of the report. In January, Jason Ronald, Microsoft's VP of 'Next Generation,' discussed plans to integrate Xbox and Windows experiences into PC gaming handhelds developed by OEMs (Asus, Lenovo, and Razer, for example).

The next-gen Xbox, reportedly approved by Microsoft CEO Satya Nadella, is described as a premium successor to the Xbox Series X. This, along with a first-party handheld and new controllers, will supposedly complete Microsoft's 2027 console offering. Interestingly, the report suggests no direct successor to the Xbox Series S is planned, perhaps positioning the handheld to fill that market segment.

Windows Central anticipates the next-gen Xbox will have a more PC-like architecture than its predecessors, supporting third-party storefronts like Steam, the Epic Games Store, and GOG, while maintaining backwards compatibility. This aligns with Xbox president Sarah Bond's statement last year about Microsoft's focus on delivering a significant technological leap in next-generation hardware.

The future of consoles is a topic of much debate. The Xbox Series X and S have faced challenges in the market, and Sony has hinted at the PlayStation 5 being in the latter half of its lifecycle. While Nintendo prepares to launch the Switch 2, concerns exist about the traditional console market's viability. 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 few major titles. Despite these challenges, this report suggests Microsoft remains committed to the console market.