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

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

Although Microsoft has not officially commented on these reports, various gaming executives have hinted at the development of both devices in public interviews. In January, Jason Ronald, Microsoft's VP of 'Next Generation,' shared with 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. However, it's important to note that "Keenan" is not a first-party Xbox handheld, which Phil Spencer, the head of Microsoft Gaming, suggested is still several years away.

Xbox Games Series Tier List

Xbox Games Series Tier List

Windows Central also reports that the next-gen Xbox has been fully approved by Microsoft CEO Satya Nadella. This upcoming console is described as a premium successor to the Xbox Series X, expected to be released in 2027 alongside a first-party Xbox gaming handheld and new controllers, completing Microsoft's next console lineup. Notably, there are no plans for a direct next-generation successor to the less powerful Xbox Series S, suggesting that the handheld might fill the role of a more affordable option.

The next-gen Xbox is anticipated to be more akin to a PC than previous Xbox consoles, with support for third-party storefronts like Steam, the Epic Games Store, and GOG. Continued backward compatibility is also expected. Last year, Xbox president Sarah Bond emphasized Microsoft's commitment to advancing its next-generation hardware, aiming for the largest technological leap in console history.

The future of the console market remains a topic of much speculation. The Xbox Series X and S are reportedly struggling in the ongoing 'console war,' while Sony has indicated that the PlayStation 5 is nearing the latter half of its lifecycle. With Nintendo poised to launch the Switch 2 later this year, there are growing concerns about the sustainability of traditional video game consoles.

Phil Spencer has acknowledged that the console market has not seen significant growth recently, with a stable but unchanging customer base primarily engaging with a few blockbuster games. Last year, former Xbox executive Peter Moore speculated to IGN about the future viability of consoles. However, the latest reports indicate that Microsoft remains committed to the console market, planning significant innovations for its next generation of gaming hardware.