Next-Gen Xbox Launch Slated for 2027, Handheld in 2025

A recent report from Windows Central has shed light on Microsoft's ambitious plans for the future of its video game hardware, setting the stage for a new era in gaming. The report suggests that a full next-generation Xbox console is slated for release in 2027, while an Xbox-branded gaming handheld, codenamed Keenan, is expected to hit the market in late 2025. These developments signal Microsoft's intent to expand its footprint in the gaming industry and cater to a wide range of gaming preferences.

The upcoming Xbox handheld, known as Keenan, is designed for PC gaming and is being developed in collaboration with original equipment manufacturers (OEMs) such as Asus, Lenovo, and Razer. This partnership aims to merge Xbox and Windows experiences, enhancing the versatility of PC gaming handhelds. Notably, this device does not represent a first-party Xbox handheld, which Microsoft gaming boss Phil Spencer has indicated is still years away.

On the other hand, the next-gen Xbox, greenlit by Microsoft CEO Satya Nadella, is described as a premium successor to the Xbox Series X. This console is set to be more akin to a PC, supporting third-party storefronts like Steam, the Epic Games Store, and GOG, while maintaining backwards compatibility. Alongside the new console, Microsoft plans to introduce new controllers and a first-party Xbox gaming handheld, rounding out a comprehensive console offering by 2027. It appears that Microsoft may not release a direct next-gen successor to the Xbox Series S, possibly positioning the handheld to fill the role of a more affordable, less powerful console option.

Last year, Xbox president Sarah Bond emphasized Microsoft's commitment to the next generation of hardware, promising a significant technological leap. This comes at a time when the traditional video game console market faces uncertainty. The Xbox Series X and S have struggled to gain ground in the 'console war,' while Sony has indicated that the PlayStation 5 is nearing the second half of its lifecycle. Nintendo, however, is poised to launch the Switch 2 later this year, adding another player to the mix.

Phil Spencer has openly discussed the stagnant growth of the console business, noting that the market is dominated by a few massive games, leaving limited space for other titles. Former Xbox executive Peter Moore also questioned the future of consoles in an interview with IGN. Despite these challenges, Microsoft's latest plans suggest a strong belief in the continued relevance and evolution of gaming consoles.