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 hardware. It claims a next-generation Xbox console is slated for release in 2027, alongside an Xbox-branded handheld gaming device launching later in 2025.

Windows Central, citing sources, details a partner PC gaming handheld codenamed "Keenan," expected in late 2025. Simultaneously, a successor to the Xbox Series X and S, currently in full production, is reportedly planned for a 2027 release.

While Microsoft remains officially silent, previous comments from executives hint at these developments. In January, Jason Ronald, Microsoft's VP of 'Next Generation,' discussed combining Xbox and Windows experiences for PC gaming handhelds developed by OEMs (like Asus, Lenovo, and Razer). This "Keenan" project is distinct from a first-party Xbox handheld, which Phil Spencer, head of Xbox, previously indicated was still years away.

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

Windows Central anticipates this next-gen Xbox will be more PC-like than its predecessors, supporting third-party storefronts such as Steam, the Epic Games Store, and GOG, while maintaining backwards compatibility.

This aligns with previous statements. Xbox president Sarah Bond stated Microsoft was "moving full speed ahead on our next generation hardware, focused on delivering the biggest technological leap ever in a generation."

The future of consoles is uncertain. The Xbox Series X and S are facing challenges in the market, and Sony has hinted at the PlayStation 5 entering its latter half of its lifecycle. While Nintendo's Switch 2 is anticipated later this year, concerns exist about the traditional console market's sustainability.

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. Past comments from former Xbox executive Peter Moore suggest internal discussions about the future viability of consoles.

This latest report indicates Microsoft's belief in the continued relevance of the console market, with ambitious plans to redefine the Xbox experience for the next generation.