Next-Gen Xbox Expected in 2027, Xbox Handheld Coming 2025

A recent report from Windows Central has shed light on Microsoft's ambitious plans for its video game hardware, revealing that a full next-generation Xbox is slated for release in 2027, alongside an Xbox-branded gaming handheld expected to hit the market later in 2025. This news comes amidst Microsoft's broader strategy to expand its gaming ecosystem, blending Xbox and Windows experiences seamlessly.

The report details a partner PC gaming handheld codenamed "Keenan," which is targeted for a late 2025 release. This device is part of Microsoft's collaboration with 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. Phil Spencer, the head of Microsoft Gaming, has hinted that a true Xbox-branded handheld is still years away.

For the next-gen Xbox, Windows Central reports that it has received full approval from Microsoft CEO Satya Nadella. This new console is described as a premium successor to the Xbox Series X, designed to be more akin to a PC than any previous Xbox. It will support third-party storefronts like Steam, the Epic Games Store, and GOG, and will continue to offer backwards compatibility. This next-gen console, along with a first-party Xbox gaming handheld and new controllers, is expected to complete Microsoft's console lineup in 2027. Notably, there seems to be no direct next-gen successor planned for the less powerful Xbox Series S, suggesting that the new handheld might fill that market segment.

Last year, Xbox president Sarah Bond emphasized Microsoft's commitment to pushing the boundaries with their next-generation hardware, aiming for the most significant technological leap in console history. Despite these ambitious plans, the future of traditional video game consoles remains uncertain. The Xbox Series X and S have struggled in the ongoing 'console war,' while Sony has indicated that the PlayStation 5 is entering the second half of its lifecycle. Nintendo, on the other hand, is preparing to launch the Switch 2 later this year, amidst growing concerns about the viability of the console market.

Phil Spencer has acknowledged the stagnation in the console business, pointing out that the market has not grown significantly in recent years. It is dominated by a few major titles, which leaves less room for other games. Former Xbox executive Peter Moore also questioned the future of consoles in an interview with IGN last year. However, this latest report suggests that Microsoft remains committed to the console market, believing in its continued relevance and potential for growth.