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

A recent report sheds light on Microsoft's ambitious plans for its video game hardware, revealing intentions to launch a next-generation Xbox in 2027 and an Xbox-branded gaming handheld in late 2025. According to Windows Central, a partner PC gaming handheld codenamed "Keenan" is in development for a 2025 release, while a successor to the Xbox Series X and S is now in full production and slated for 2027.

Microsoft has yet to officially comment on these developments, but its gaming executives have hinted at these projects in various interviews. In January, Jason Ronald, Microsoft's VP of 'Next Generation,' told The Verge that the company aims to integrate Xbox and Windows experiences for PC gaming handhelds developed by third-party manufacturers like Asus, Lenovo, and Razer. Notably, "Keenan" is distinct from a first-party Xbox handheld, which Phil Spencer, Microsoft's gaming boss, has indicated is still years away.

Windows Central's report suggests that the next-gen Xbox has received full approval from Microsoft CEO Satya Nadella. This premium console is expected to be more akin to a PC than any previous Xbox, supporting third-party storefronts such as Steam, the Epic Games Store, and GOG, while continuing to offer backwards compatibility. Alongside this console, Microsoft plans to release a first-party Xbox gaming handheld and new controllers, aiming to complete its console lineup by 2027. Interestingly, there seems to be no direct next-gen successor planned for the less powerful Xbox Series S, hinting that the upcoming handheld might fill the role of a more affordable gaming option.

Last year, Xbox president Sarah Bond emphasized Microsoft's commitment to advancing its next-generation hardware, promising the largest technological leap in console history. Amidst speculation about the future of gaming consoles, the Xbox Series X and S have been struggling in the 'console war,' while Sony has hinted that the PlayStation 5 is nearing the end of its lifecycle. Nintendo, on the other hand, is preparing to launch the Switch 2 later this year. Concerns are mounting that the traditional console market may be facing challenges.

Phil Spencer has noted that the console market has not seen significant growth in recent years, with a static customer base primarily focused on a few blockbuster games. Former Xbox executive Peter Moore echoed these sentiments in an interview with IGN, questioning the future viability of consoles. However, Microsoft's latest plans suggest a strong belief in the continued relevance of gaming hardware.

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