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

A recent report has shed light on Microsoft's ambitious plans for its video game hardware, suggesting 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 currently in development and is targeted for a late 2025 launch. Additionally, a successor to the Xbox Series X and S is reportedly in full production, with a planned debut in two years.

While Microsoft has not officially commented on these reports, its gaming executives have hinted at these developments in various interviews. In January, Jason Ronald, Microsoft’s Vice President of ‘Next Generation,’ discussed with The Verge the company’s intentions to integrate Xbox and Windows experiences for PC gaming handhelds developed by 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, Microsoft's gaming chief, has suggested that a first-party Xbox handheld is still several years away.

Xbox Games Series Tier List

Windows Central also reported that the next-gen Xbox has received full approval from Microsoft CEO Satya Nadella. This console is poised to be a premium successor to the Xbox Series X, and is expected to be accompanied by a first-party Xbox gaming handheld and new controllers by 2027. Notably, Microsoft may not plan to release a direct next-gen successor to the less powerful Xbox Series S, potentially positioning the new handheld to fill the role of a more affordable gaming option.

The next-gen Xbox is anticipated to resemble a PC more than any previous Xbox, with support for third-party storefronts such as Steam, the Epic Games Store, and GOG. Microsoft is committed to maintaining backwards compatibility with this new console. Xbox president Sarah Bond emphasized last year that Microsoft is "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 ongoing speculation about the future of video game consoles. The Xbox Series X and S are struggling in the ongoing 'console war,' and Sony has indicated that the PlayStation 5 is entering the second half of its lifecycle. Meanwhile, Nintendo is gearing up for the launch of the Switch 2 later this year, amid growing concerns about the sustainability of the traditional video game console market.

Phil Spencer has acknowledged that the console market has not grown significantly in recent years, with a large but stagnant customer base predominantly focused on a few major titles. Last year, former Xbox executive Peter Moore suggested to IGN that Microsoft might be reevaluating the future of consoles. However, based on the latest reports, it appears Microsoft is confident in the continued relevance and potential growth of the console market.