A new report reveals Microsoft's ambitious plans for video game hardware, including a next-generation Xbox console slated for 2027 and an Xbox-branded handheld gaming device expected later in 2025.
Windows Central, citing sources, reported on a partner PC gaming handheld codenamed "Keenan," targeting a late 2025 release. Simultaneously, a successor to the Xbox Series X and S is reportedly in full production, with a launch planned for two years later.
While Microsoft hasn't officially commented, its gaming executives have alluded to these devices in previous interviews. In January, Jason Ronald, Microsoft's VP of Next Generation, told The Verge about plans to integrate Xbox and Windows experiences into PC gaming handhelds from original equipment manufacturers (OEMs) like Asus, Lenovo, and Razer. It's important to note that "Keenan" is distinct from a first-party Xbox handheld, which Microsoft gaming boss Phil Spencer has indicated is still years away.
The next-gen Xbox, according to Windows Central, has received the green light from Microsoft CEO Satya Nadella. Positioned as a premium successor to the Xbox Series X, this console, along with a first-party Xbox handheld and new controllers, is expected to complete Microsoft's 2027 console offering. This suggests Microsoft might not release a direct successor to the less powerful Xbox Series S, perhaps relying on its handheld to fill that market segment.
Windows Central anticipates the next-gen Xbox will be more PC-like than previous iterations, supporting third-party storefronts such as Steam, the Epic Games Store, and GOG, while maintaining backwards compatibility.
Last year, Xbox president Sarah Bond stated Microsoft was "moving full speed ahead on our next generation hardware, focused on delivering the biggest technological leap ever in a generation."
The future of consoles is a topic of much debate. The Xbox Series X and S have reportedly faced challenges in the console market, and Sony has indicated the PlayStation 5 is nearing the midpoint of its lifecycle. While Nintendo is preparing to launch the Switch 2 later this year, concerns remain about the traditional console market's viability.
Spencer has acknowledged the lack of significant growth in the console market in recent years, citing a large but stagnant customer base focused on a few major titles. Last year, former Xbox executive Peter Moore told IGN that Microsoft would have been considering the future of consoles.
This latest report suggests Microsoft's decision: the future of consoles, for them, is very much alive.
