Xbox Handheld & Next-Gen Console: Microsoft's Future Plans Revealed

Microsoft is reportedly gearing up for a massive hardware refresh: a new Xbox gaming handheld in 2025 and a full next-gen console in 2027. Windows Central's latest report outlines the company's ambitious roadmap, giving us a glimpse into the future of Xbox.

Codenamed Keenan, the Xbox-branded gaming handheld is reportedly in the works for a late 2025 release. But before you get too excited, it's not a first-party Microsoft device. Instead, it’s a partner PC gaming handheld designed to bring the Xbox and Windows experience to portable gaming. Think Asus ROG Ally or Lenovo Legion Go, but with deep Xbox integration.

Microsoft's Jason Ronald has already hinted at this direction, confirming the company wants to bridge the gap between Xbox and Windows gaming. Meanwhile, Xbox boss Phil Spencer has said a true first-party Xbox handheld is still years away.

Next-Gen Xbox Fully Greenlit

Looking further ahead, Microsoft is set to launch a successor to the Xbox Series X and S in 2027. According to the report, Microsoft CEO Satya Nadella has fully approved the project, and it’s expected to be the most PC-like Xbox ever.

The new console is rumored to support third-party storefronts like Steam, the Epic Games Store, and GOG. Backward compatibility is also given. However, it looks like Microsoft might be moving away from a direct successor to the Series S – potentially positioning the handheld as a more affordable, lower-power option.

The Future of Xbox & Consoles

Xbox’s hardware refresh comes at a time of uncertainty in the console industry. With PS5 entering the second half of its lifecycle, Nintendo prepping a Switch 2, and Xbox Series X/S struggling in sales, Microsoft seems to be rethinking its approach.

Phil Spencer has previously acknowledged that the console business isn't growing as it used to. But if this report is accurate, Microsoft is betting that the future of Xbox still includes dedicated gaming hardware – just with more flexibility and a bigger focus on PC-like functionality.

So, an Xbox handheld in 2025 and a next-gen console in 2027 – what do you think? Is this the right move for Microsoft?