Next-Gen Xbox Launching 2027, Xbox Handheld Coming 2025

A recent report from Windows Central has shed light on Microsoft’s ambitious plans for its future in the video game hardware market. The report suggests that a new next-generation Xbox is slated for release in 2027, while an Xbox-branded gaming handheld, codenamed Keenan, is expected to hit the market later in 2025. Microsoft has yet to officially confirm these details, but its gaming executives have hinted at such developments in various interviews.

In January, Jason Ronald, Microsoft’s Vice President of 'Next Generation,' spoke to The Verge about the company’s intention 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 the Keenan project 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

According to Windows Central, the next-gen Xbox has been fully approved by Microsoft CEO Satya Nadella. This upcoming console is envisioned as a premium successor to the Xbox Series X. Alongside this, Microsoft is also planning to release a first-party Xbox gaming handheld and new controllers, completing its console lineup by 2027. Interestingly, there are no plans for a direct next-gen successor to the less powerful Xbox Series S, suggesting that the new handheld might fill the role of a more affordable gaming option.

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

The future of the console market remains uncertain, with the Xbox Series X and S facing challenges in the ongoing ‘console war,’ and Sony indicating that the PlayStation 5 is entering the second half of its lifecycle. Nintendo, on the other hand, is gearing up to launch the Switch 2 later this year. Amidst these developments, there is growing concern about the sustainability of the traditional video game console business.

Phil Spencer has acknowledged that the console market has not seen significant growth in recent years, with a loyal but stagnant customer base increasingly focused on a few major titles. This trend has sparked discussions within the industry about the viability of consoles moving forward. Last year, former Xbox executive Peter Moore speculated to IGN about Microsoft's deliberations on the future of consoles. The latest report, however, indicates that Microsoft remains committed to the console market and is betting big on its upcoming hardware releases.