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

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

Although Microsoft has not yet 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,’ shared with The Verge that the company aims to merge Xbox and Windows experiences for PC gaming handhelds produced by original equipment manufacturers (OEMs) such as Asus, Lenovo, and Razer. Notably, Keenan is not a first-party Xbox handheld, as Phil Spencer, Microsoft’s gaming chief, has indicated that such a device is still years away.

Xbox Games Series Tier List

Windows Central claims that the next-gen Xbox has been fully approved by Microsoft CEO Satya Nadella. This premium successor to the Xbox Series X, along with a first-party Xbox gaming handheld and new controllers, will complete Microsoft’s console lineup by 2027. Interestingly, it appears Microsoft will not release a direct next-gen successor to the less powerful Xbox Series S, possibly intending for the handheld to fill that niche.

The next-gen Xbox 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. Continued backwards compatibility is also anticipated. 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."

The future of consoles remains a topic of much speculation. The Xbox Series X and S have been struggling in the ongoing ‘console war,’ while Sony has indicated that the PlayStation 5 is entering the latter part of its lifecycle. Meanwhile, Nintendo is poised to launch the Switch 2 later this year, amidst concerns that the traditional video game console market might be facing challenges.

Phil Spencer has noted in interviews that the console market has not seen significant growth in recent years, with a large but stagnant customer base increasingly focused on a few massive games, leaving limited space for other titles. Last year, former Xbox executive Peter Moore discussed with IGN the question of whether consoles have a future. However, based on this latest report, it seems Microsoft remains committed to the console market and believes in its future.