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

A recent report sheds light on Microsoft's ambitious plans for its video game hardware lineup, hinting at a full next-generation Xbox set to launch in 2027 and an Xbox-branded gaming handheld slated for release later in 2025. This development has sparked interest and speculation among gaming enthusiasts and industry analysts alike.

According to Windows Central, Microsoft is developing a partner PC gaming handheld, codenamed Keenan, expected to debut in late 2025. Additionally, a successor to the current Xbox Series X and S is reportedly in full production and scheduled for a 2027 release. While Microsoft has not officially confirmed these details, key 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 plans to integrate Xbox and Windows experiences for PC gaming handhelds developed by original equipment manufacturers (OEMs) like Asus, Lenovo, and Razer. However, the Keenan project is distinct from a first-party Xbox handheld, which Phil Spencer, Microsoft's gaming boss, suggested is still years away.

The next-gen Xbox, greenlit by Microsoft CEO Satya Nadella, is poised to be a premium successor to the Xbox Series X. Alongside this console, Microsoft plans to introduce a first-party Xbox gaming handheld and new controllers by 2027. It appears Microsoft may not plan a direct next-gen successor to the less powerful Xbox Series S, potentially positioning the handheld to fill that niche.

Windows Central suggests that the upcoming Xbox will resemble a PC more than any previous Xbox, with support for third-party storefronts like Steam, the Epic Games Store, and GOG. Backwards compatibility is expected to continue, ensuring a seamless gaming experience for users.

Last year, Xbox president Sarah Bond emphasized Microsoft's commitment to the next generation of hardware, aiming for "the biggest technological leap ever in a generation." This statement underscores Microsoft's dedication to pushing the boundaries of gaming technology.

Amidst these developments, there is ongoing speculation about the future of the console market. The Xbox Series X and S have faced challenges in the so-called 'console war,' while Sony has indicated that the PlayStation 5 is entering the latter half of its lifecycle. Meanwhile, Nintendo is preparing to launch the Switch 2 later this year. Concerns are growing that the traditional video game console business may be at risk.

Phil Spencer has noted in interviews that the console market has not seen significant growth in recent years, with a static customer base largely focused on a few major titles. This trend has led to discussions about the viability of consoles, as highlighted by former Xbox executive Peter Moore in a conversation with IGN last year.

However, Microsoft's latest plans suggest a firm belief in the future of consoles. By introducing innovative hardware and expanding their ecosystem, Microsoft aims to rejuvenate interest and growth in the gaming industry.