Next-Gen Xbox Slated for 2027, Handheld in 2025

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

Although Microsoft has yet to officially comment on these developments, its gaming executives have hinted at these projects in various interviews. In January, Jason Ronald, Microsoft's VP of 'Next Generation,' discussed with The Verge the company's intention to integrate Xbox and Windows experiences for PC gaming handhelds produced by third-party manufacturers like 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 suggested that a true Xbox handheld is still years away.

Xbox Games Series Tier List

Windows Central reports that the next-gen Xbox has received full approval from Microsoft CEO Satya Nadella. This premium console will succeed the Xbox Series X and is expected to be accompanied by a first-party Xbox gaming handheld and new controllers, completing Microsoft's console lineup by 2027. Notably, there are no plans for a direct next-gen successor to the less powerful Xbox Series S, hinting that the upcoming handheld might fill that niche.

The anticipated next-gen Xbox is said to be more akin to a PC than any previous Xbox, with support for third-party storefronts like Steam, the Epic Games Store, and GOG, alongside continued backward compatibility. Last year, Xbox president Sarah Bond emphasized Microsoft's commitment to advancing to the next generation of hardware, promising "the biggest technological leap ever in a generation."

The future of gaming consoles is a topic rife with speculation. The Xbox Series X and S are struggling in the ongoing 'console war,' and Sony has indicated that the PlayStation 5 is entering the latter part of its lifecycle. Meanwhile, Nintendo is preparing to launch the Switch 2 later this year, raising questions about the sustainability of the traditional console market.

Phil Spencer has noted in interviews that the console market has not seen significant growth recently, pointing to a stable but stagnant customer base focused on a few major titles. Last year, former Xbox executive Peter Moore expressed to IGN that Microsoft was likely contemplating the future viability of consoles. However, this latest report suggests that Microsoft remains committed to the console business, aiming to innovate and expand its gaming hardware offerings.