Next-Gen Xbox Launching 2027, Xbox Handheld in 2025

A recent report has shed light on Microsoft's ambitious plans for its video game hardware, revealing a roadmap that includes a next-generation Xbox slated for release in 2027 and an Xbox-branded gaming handheld expected to launch in late 2025. According to Windows Central, the partner PC gaming handheld, codenamed Keenan, is currently in development and set to hit the market by the end of 2025. Additionally, a successor to the Xbox Series X and S is reportedly in full production and scheduled to debut in two years.

While Microsoft has yet to officially comment on these developments, key gaming executives have hinted at these projects in various interviews. In January, Jason Ronald, Microsoft’s Vice President of 'Next Generation,' told The Verge that the company aims to integrate Xbox and Windows experiences to enhance PC gaming handhelds manufactured by original equipment manufacturers (OEMs) such as Asus, Lenovo, and Razer. It's important to note that Keenan is not a first-party Xbox handheld, which Microsoft gaming chief Phil Spencer has suggested is still years away.

The next-gen Xbox, reportedly greenlit by Microsoft CEO Satya Nadella, is positioned as a premium successor to the Xbox Series X. Alongside this console, Microsoft plans to release a first-party Xbox gaming handheld and new controllers, completing its console lineup by 2027. Notably, there seems to be no direct next-gen successor planned for the less powerful Xbox Series S, hinting that the new handheld might serve as a more affordable and less powerful alternative in Microsoft's ecosystem.

Windows Central suggests that the upcoming next-gen Xbox will be more akin to a PC than any previous Xbox, featuring support for third-party storefronts like Steam, the Epic Games Store, and GOG. Backwards compatibility is expected to continue, ensuring a seamless gaming experience across generations. Last year, Xbox president Sarah Bond emphasized Microsoft's commitment to delivering the most significant technological leap in a generation with their next hardware.

The future of consoles remains a topic of much speculation. The Xbox Series X and S are reportedly struggling in the ongoing 'console war,' while Sony has indicated 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 market.

Phil Spencer has acknowledged in interviews that the console market has not seen significant growth in recent years, maintaining a sizable yet static customer base that predominantly plays a select few major titles. This trend leaves limited room for other games to thrive. Last year, former Xbox executive Peter Moore speculated to IGN that Microsoft might be contemplating the future viability of consoles altogether. However, the latest report suggests that Microsoft is firmly committed to the console business, planning to innovate and expand its hardware offerings.