A recent report has shed light on Microsoft's ambitious plans for its video game hardware lineup, hinting at a full next-generation Xbox slated for release in 2027, alongside an Xbox-branded gaming handheld expected to hit the market by late 2025. According to Windows Central, a partner PC gaming handheld codenamed "Keenan" is in development for a 2025 launch, while a successor to the Xbox Series X and S is now fully in production and expected to debut in two years.
Microsoft has yet to officially comment on these developments, but its gaming executives have hinted at these projects in various interviews. In January, Jason Ronald, Microsoft’s Vice President of 'Next Generation,' told The Verge about plans to merge Xbox and Windows experiences for PC gaming handhelds manufactured by original equipment manufacturers (OEMs) such as Asus, Lenovo, and Razer. However, it's clarified that Keenan is not a first-party Xbox handheld, which Phil Spencer, Microsoft's gaming chief, suggested is still years away.
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Windows Central reports that the next-gen Xbox has received full approval from Microsoft CEO Satya Nadella. This console is positioned as a premium successor to the Xbox Series X. Alongside this, a first-party Xbox gaming handheld and new controllers are expected to complete Microsoft’s console offerings by 2027. Interestingly, there seems to be no plan for a direct next-gen successor to the less powerful Xbox Series S, suggesting that Microsoft might be eyeing its handheld to fill the role of a more affordable, less powerful option.
The next-gen Xbox is anticipated to resemble a PC more than any previous Xbox, with support for third-party storefronts like Steam, the Epic Games Store, and GOG. Backwards compatibility is also expected to be a key feature. Last year, Xbox president Sarah Bond emphasized Microsoft's commitment to making a significant technological leap with their next generation of hardware.
The future of consoles is a subject 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 second half of its lifecycle. Nintendo is set to release the Switch 2 later this year, amid growing concerns about the viability of the traditional video game console market.
Phil Spencer has noted in interviews that the console market has not grown significantly in recent years, with a stable but stagnant customer base largely focused on a few blockbuster titles. This situation leaves less room for other games. Last year, former Xbox executive Peter Moore speculated to IGN about Microsoft's contemplation of the future of consoles. However, the latest report suggests that Microsoft remains committed to the console market and sees a future in it.
