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 full next-generation Xbox is slated for release in 2027, and an Xbox-branded gaming handheld is expected to hit the market in late 2025. According to Windows Central, a partner PC gaming handheld, codenamed Keenan, is in development for a late 2025 launch, while the successor to the Xbox Series X and S is now in full production and scheduled for release in two years.

Although Microsoft has not officially commented on these reports, 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 manufactured by original equipment manufacturers (OEMs) 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 indicated that a true Xbox handheld is still years away.

Xbox Games Series Tier List

The next-gen Xbox, reportedly greenlit by Microsoft CEO Satya Nadella, is described as 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 are no plans for a direct next-gen successor to the less powerful Xbox Series S, suggesting that Microsoft may position its handheld to fill the niche for a more affordable, less powerful console.

Windows Central suggests that the next-gen Xbox will resemble a PC more than any previous Xbox, with support for third-party storefronts such as Steam, the Epic Games Store, and GOG. Continued backwards compatibility is also expected. Last year, Xbox president Sarah Bond emphasized Microsoft's commitment to delivering the most significant technological leap in a generation with their next-gen hardware.

The future of consoles is a topic of much speculation. The Xbox Series X and S are struggling in the 'console war,' and Sony has indicated that the PlayStation 5 is entering the latter part of its lifecycle. Meanwhile, Nintendo is gearing up to launch the Switch 2 later this year, amidst growing concerns about the viability of the traditional video game console market.

Xbox head Phil Spencer has noted that the console market has not grown significantly in recent years, with a stable but stagnant customer base increasingly focused on a few blockbuster titles. Last year, former Xbox executive Peter Moore suggested to IGN that Microsoft might be questioning the future of consoles. However, based on this latest report, it appears that Microsoft remains committed to the console business.