Microsoft's vision for the future of gaming hardware is becoming clearer, with reports suggesting a next-generation Xbox console slated for release in 2027 and an Xbox-branded gaming handheld expected to hit the market in late 2025. According to Windows Central, a partner PC gaming handheld codenamed Keenan is currently in development for a late 2025 launch. Additionally, a successor to the Xbox Series X and S, now in full production, is set to be released in two years.
While Microsoft has not officially confirmed these developments, gaming executives have hinted at these plans in various interviews. In January, Jason Ronald, Microsoft’s VP of 'Next Generation,' told The Verge that the company aims to integrate Xbox and Windows experiences for PC gaming handhelds manufactured by third-party hardware companies like Asus, Lenovo, and Razer. It's important to note that Keenan is not a first-party Xbox handheld, as Microsoft gaming boss Phil Spencer has suggested that such a device is still years away.
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Windows Central reports that the next-gen Xbox has received full approval from Microsoft CEO Satya Nadella. This premium successor to the Xbox Series X is expected to be part of a comprehensive console lineup in 2027, which will also include a first-party Xbox gaming handheld and new controllers. Interestingly, Microsoft appears to have no plans for a direct next-gen successor to the less powerful Xbox Series S, possibly positioning the handheld to fill that niche.
The upcoming next-gen Xbox is anticipated to resemble a PC more closely than any previous Xbox model. It is expected to support third-party storefronts such as Steam, the Epic Games Store, and GOG, and will continue to offer backwards compatibility. Last year, Xbox president Sarah Bond emphasized Microsoft's commitment to a significant technological leap with their next generation hardware.
Amidst speculation about the future of consoles, the Xbox Series X and S are reportedly struggling in the 'console war,' while Sony has indicated that the PlayStation 5 is nearing the midpoint of its lifecycle. Nintendo's Switch 2 is set to launch later this year, raising concerns about the viability of traditional video game consoles. Phil Spencer has noted that the console market has not grown significantly in recent years, with a static customer base increasingly focused on a few major games. Former Xbox executive Peter Moore even questioned the future of consoles in an interview with IGN last year.
However, based on the latest report, it appears Microsoft remains confident in the future of consoles and is actively working on expanding its hardware offerings.
