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

A recent report has shed light on Microsoft's ambitious plans for its video game hardware, revealing that a next-generation Xbox is slated for release in 2027, and an Xbox-branded gaming handheld is expected to hit the market in late 2025.

According to Windows Central, a partner PC gaming handheld codenamed "Keenan" is currently in development and is set to launch in late 2025. Additionally, a successor to the Xbox Series X and S is reportedly in full production and scheduled for release in two years.

While 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 integrate Xbox and Windows experiences for PC gaming handhelds produced by original equipment manufacturers (OEMs) such as Asus, Lenovo, and Razer. It's important to note that Keenan is not a first-party Xbox handheld, as Microsoft gaming boss Phil Spencer has indicated that a first-party device is still years away.

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

The next-gen Xbox is anticipated to resemble a PC more than any previous Xbox model, with support for third-party storefronts like Steam, the Epic Games Store, and GOG. Backwards compatibility will continue to be a feature.

Last year, Xbox president Sarah Bond emphasized Microsoft's commitment to advancing its next-generation hardware, aiming for the most significant technological leap in console history.

Amidst these developments, the future of traditional video game consoles is under scrutiny. The Xbox Series X and S are struggling in the 'console war,' and Sony has indicated that the PlayStation 5 is entering the latter half of its lifecycle. Meanwhile, Nintendo is preparing to launch the Switch 2 later this year, raising concerns about the sustainability of the console market.

Phil Spencer has noted that the console market has not seen significant growth in recent years, with a static customer base increasingly focused on a few major titles. Former Xbox executive Peter Moore also questioned the future of consoles in an interview with IGN last year.

Despite these challenges, Microsoft's latest plans suggest a strong belief in the continued relevance and potential of gaming consoles.