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Next-Gen Xbox Launching 2027, Xbox Handheld in 2025

Author:Kristen Update:May 25,2025

A recent report sheds light on Microsoft's ambitious plans for its video game hardware, signaling a significant expansion in its gaming ecosystem. According to Windows Central, Microsoft is gearing up to launch a next-generation Xbox in 2027 and an Xbox-branded gaming handheld in late 2025.

The handheld, codenamed "Keenan," is slated for a 2025 release and is designed to enhance the PC gaming experience. It will integrate Xbox and Windows functionalities, a vision that Jason Ronald, Microsoft’s VP of 'Next Generation,' shared with The Verge in January. This device, however, is not a first-party Xbox handheld but a partner PC gaming handheld, with existing OEMs like Asus, Lenovo, and Razer potentially involved. Phil Spencer, Microsoft's gaming boss, has hinted that a true first-party Xbox handheld is still years away.

On the console front, the next-gen Xbox, described as a premium successor to the Xbox Series X, is reportedly in full production and has received the green light from Microsoft CEO Satya Nadella. This new console, set to launch in 2027, will be accompanied by new controllers and possibly a first-party Xbox gaming handheld. Interestingly, Microsoft appears to be steering away from a direct successor to the less powerful Xbox Series S, possibly positioning the new handheld to fill that market segment.

The next-gen Xbox is expected to be more akin to a PC than previous Xbox consoles, supporting third-party storefronts such as Steam, the Epic Games Store, and GOG, while maintaining backwards compatibility. Xbox president Sarah Bond emphasized last year that Microsoft is pushing forward with its next-generation hardware, aiming for the biggest technological leap in console history.

The gaming industry is at a crossroads, with Xbox Series X and S struggling in the ongoing 'console war,' and Sony indicating that the PlayStation 5 is entering the latter part of its lifecycle. Nintendo's Switch 2 is set to launch later this year, adding to the competitive landscape. Amid these developments, there's growing concern about the future of traditional consoles. Phil Spencer has noted that the console market has not grown significantly, with players increasingly focusing on a few major titles.

Despite these challenges, Microsoft's latest plans suggest a strong belief in the future of consoles. The company's strategic moves indicate a commitment to innovation and expansion in the gaming hardware space, aiming to redefine what gaming on Xbox means for players worldwide.

Xbox Games Series Tier List

As Microsoft continues to evolve its gaming strategy, the integration of new hardware and enhanced software experiences will be crucial in maintaining and growing its player base in the ever-competitive gaming market.