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

A recent report has shed light on Microsoft's ambitious plans for its video game hardware, revealing a full next-generation Xbox console expected in 2027 and an Xbox-branded gaming handheld slated for release in late 2025. According to Windows Central, a partner PC gaming handheld codenamed "Keenan" is currently in development and set to launch in late 2025, while a successor to the Xbox Series X and S is reportedly "fully" in production and due out in two years.

Although Microsoft has not yet officially commented on these reports, 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 developed by original equipment manufacturers (OEMs) such as Asus, Lenovo, and Razer. It's important to note that Keenan is not a first-party Xbox handheld; Phil Spencer, Microsoft's gaming boss, suggested that a true first-party Xbox handheld is still years away.

Xbox Games Series Tier List

Windows Central has also reported that the next-gen Xbox, fully approved by Microsoft CEO Satya Nadella, will be a premium successor to the Xbox Series X. Alongside a first-party Xbox gaming handheld and new controllers, this console is set to complete Microsoft's console lineup in 2027. Interestingly, there's no mention of a direct next-gen successor to the less powerful Xbox Series S, hinting that the handheld might fill the role of a more affordable gaming option.

The upcoming Xbox is expected to 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. Continued backwards compatibility is also anticipated. Last year, Xbox president Sarah Bond emphasized Microsoft's commitment to the next generation of hardware, stating they are "moving full speed ahead on our next generation hardware, focused on delivering the biggest technological leap ever in a generation."

Amidst these developments, there is widespread speculation about the future of video game consoles. The Xbox Series X and S are struggling in the 'console war,' and Sony has indicated that the PlayStation 5 is nearing the second half of its lifecycle. With Nintendo gearing up to launch the Switch 2 later this year, there's a growing concern that the traditional console market may be facing challenges.

Phil Spencer has noted in interviews that the console market has not seen significant growth in recent years, with a stagnant customer base increasingly focused on a few massive games. This situation leaves little room for other titles. Last year, former Xbox executive Peter Moore suggested to IGN that Microsoft might be contemplating the future viability of consoles. However, based on the latest reports, it appears Microsoft remains committed to the console business.