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

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, accompanied by an Xbox-branded gaming handheld expected to launch in late 2025. According to Windows Central, a partner PC gaming handheld codenamed Keenan is in development for a late 2025 release, while the successor to the Xbox Series X and S is now in full production and set to debut in two years.

Microsoft has yet to officially comment on these reports, but its gaming executives have hinted at these developments 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 produced by original equipment manufacturers (OEMs) such as Asus, Lenovo, and Razer. However, Keenan is not a first-party Xbox handheld, as Microsoft gaming boss Phil Spencer has suggested that a true Xbox handheld is still years away.

Xbox Games Series Tier List

Windows Central also reported that the next-gen Xbox has been fully approved by Microsoft CEO Satya Nadella. This premium successor to the Xbox Series X, along with a first-party Xbox gaming handheld and new controllers, is expected to complete 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 upcoming handheld might fill the role of a more affordable, less powerful console option.

The next-gen Xbox is anticipated to be more akin to a PC than any previous Xbox, with support for third-party storefronts like Steam, the Epic Games Store, and GOG. Backwards compatibility will continue to be a key feature. Last year, Xbox president Sarah Bond emphasized Microsoft's commitment to the next generation of hardware, promising "the biggest technological leap ever in a generation."

Amidst speculation about the future of consoles, the Xbox Series X and S are struggling in the 'console war,' while Sony has indicated that the PlayStation 5 is entering the second half of its lifecycle. Nintendo is preparing to launch the Switch 2 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 focused on a few major titles. Former Xbox executive Peter Moore even questioned the future of consoles in an interview with IGN last year.

Despite these challenges, Microsoft appears to be doubling down on its console strategy, as evidenced by the latest report. This move suggests a strong belief in the continued relevance and potential growth of the console market.