A recent report from Windows Central has shed light on Microsoft's ambitious plans for its video game hardware, revealing that a next-generation Xbox is slated for a 2027 release and an Xbox-branded gaming handheld is expected to hit the market in late 2025. This news has sparked considerable interest and speculation within the gaming community about Microsoft's future in the console space.
According to the report, Microsoft is currently developing a partner PC gaming handheld codenamed Keenan, set for a late 2025 launch. Additionally, a successor to the Xbox Series X and S, described as a "full next-gen" console, is already in production and expected to debut in two years. While Microsoft has not officially confirmed these details, its gaming executives have hinted at such developments 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 developed by original equipment manufacturers (OEMs) like Asus, Lenovo, and Razer. However, Keenan is not a first-party Xbox handheld; Phil Spencer, Microsoft's gaming boss, has suggested that a first-party Xbox handheld is still years away.
The next-gen Xbox, reportedly greenlit by Microsoft CEO Satya Nadella, is poised to be a premium successor to the Xbox Series X. Alongside this new console, Microsoft plans to release a first-party Xbox gaming handheld and new controllers by 2027. Interestingly, there appears to be no direct next-gen successor planned for the less powerful Xbox Series S, suggesting that the upcoming handheld might fill the role of a more affordable gaming option.
Windows Central suggests that the next-gen Xbox will be more akin to a PC than any previous Xbox, featuring support for third-party storefronts such as Steam, the Epic Games Store, and GOG, alongside continued backwards compatibility. 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."
Amidst this news, the future of traditional video game consoles remains a topic of intense debate. The Xbox Series X and S are struggling in the '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, amid growing concerns about the sustainability of the console business.
Phil Spencer has noted in interviews that the console market has not seen significant growth in recent years, with a static customer base increasingly focused on a few major titles. Former Xbox executive Peter Moore also questioned the future of consoles in an interview with IGN last year. However, based on this latest report, it appears Microsoft is firmly committed to the console market and is betting big on its next-generation hardware to reinvigorate its position in the industry.
