A recent report has shed light on Microsoft's ambitious plans for its video game hardware lineup. According to Windows Central, a full next-generation Xbox console is slated for release in 2027, while an Xbox-branded gaming handheld, codenamed Keenan, is expected to hit the market in late 2025.
The handheld device, Keenan, is currently in development and is set to be released later in 2025. This device is described as a partner PC gaming handheld, distinct from a first-party Xbox handheld, which Microsoft's gaming chief, Phil Spencer, suggested is still years away. Jason Ronald, Microsoft's VP of 'Next Generation,' has previously discussed the company's intent to integrate Xbox and Windows experiences for PC gaming handhelds manufactured by OEMs like Asus, Lenovo, and Razer.
Meanwhile, the next-gen Xbox, fully approved by Microsoft CEO Satya Nadella, is described as a premium successor to the Xbox Series X. This new console, expected in 2027, will be accompanied by a first-party Xbox gaming handheld and new controllers, completing Microsoft's console ecosystem. Notably, 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 option.
Windows Central suggests that the upcoming Xbox will resemble a PC more than any previous Xbox model, with support for third-party storefronts such as Steam, the Epic Games Store, and GOG. Backwards compatibility will continue to be a key feature. Xbox president Sarah Bond emphasized last year that Microsoft is "moving full speed ahead on our next generation hardware, focused on delivering the biggest technological leap ever in a generation."
The future of gaming consoles remains a topic of much speculation. The Xbox Series X and S have struggled in the so-called 'console war,' while Sony has indicated that the PlayStation 5 is entering the second half of its lifecycle. Nintendo is gearing up to launch the Switch 2 later this year, amidst concerns that the traditional console market may be at risk. Phil Spencer has noted that the console market has not grown significantly in recent years, with consumers focusing on a few major titles. This situation has led to discussions about the viability of consoles, as highlighted by former Xbox executive Peter Moore in an interview with IGN. However, based on the latest reports, Microsoft seems committed to the future of gaming consoles.
