A recent report has shed light on Microsoft's ambitious plans for its video game hardware, revealing that a next-generation Xbox is slated for release in 2027, while an Xbox-branded gaming handheld is expected to hit the market by late 2025. According to Windows Central, Microsoft is currently developing a partner PC gaming handheld codenamed "Keenan" for a 2025 launch, and the successor to the Xbox Series X and S is reportedly in full production, scheduled for release in two years.
Microsoft has remained silent on these specifics, but its gaming executives have hinted at these developments in various interviews. In January, Jason Ronald, Microsoft's VP of 'Next Generation,' shared with The Verge that the company aims to integrate Xbox and Windows experiences for PC gaming handhelds manufactured by original equipment manufacturers (OEMs) such as Asus, Lenovo, and Razer. However, it's important to note that Keenan is not a first-party Xbox handheld, as Phil Spencer, Microsoft's gaming chief, has suggested that such a device is still years away.
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The next-gen Xbox, as per Windows Central, has received full approval from Microsoft CEO Satya Nadella. This premium successor to the Xbox Series X is expected to be complemented by a first-party Xbox gaming handheld and new controllers, enhancing Microsoft's console lineup by 2027. 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 niche for a more affordable, less powerful gaming option.
The next-gen Xbox is anticipated to resemble a PC more than any previous Xbox, with support for third-party storefronts such as Steam, the Epic Games Store, and GOG, while maintaining continued backwards compatibility. Last year, Xbox president Sarah Bond emphasized Microsoft's commitment to advancing its next-generation hardware, promising "the biggest technological leap ever in a generation."
Amidst speculation about the future of consoles, the Xbox Series X and S are reportedly struggling in the so-called 'console war,' while Sony has indicated that the PlayStation 5 is entering the latter part of its lifecycle. Nintendo is poised to release the Switch 2 later this year, yet there is growing concern that the traditional video game console market could be at risk.
Phil Spencer has pointed out that the console market has not seen significant growth recently, with a large but stagnant customer base primarily engaging with a few blockbuster titles. This situation leaves little room for other games to thrive. Last year, former Xbox executive Peter Moore discussed with IGN whether consoles have a future, and based on this latest report, it appears Microsoft believes they do.
