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

A recent report from Windows Central has shed light on Microsoft's ambitious plans for its video game hardware, revealing that a full next-generation Xbox is slated for release in 2027, while an Xbox-branded gaming handheld, codenamed Keenan, is expected to launch by the end of 2025. Although Microsoft has yet to officially confirm these developments, its gaming executives have hinted at such projects in various interviews.

In January, Jason Ronald, Microsoft’s Vice President of ‘Next Generation,’ discussed with The Verge the company's intention to integrate Xbox and Windows experiences for PC gaming handhelds developed by original equipment manufacturers (OEMs) like Asus, Lenovo, and Razer. It's important to note that Keenan refers to a partner PC gaming handheld, not a first-party Xbox handheld, which Phil Spencer, Microsoft's gaming chief, indicated is still years away.

The upcoming next-gen Xbox, as reported by Windows Central, has been fully approved by Microsoft CEO Satya Nadella. This premium successor to the Xbox Series X is expected to be more akin to a PC than any previous Xbox console, supporting third-party storefronts such as Steam, the Epic Games Store, and GOG, and continuing the tradition of backwards compatibility. Alongside this new console, Microsoft plans to introduce a first-party Xbox gaming handheld and new controllers, completing its console lineup by 2027. There is no indication of a direct next-gen successor to the less powerful Xbox Series S, suggesting that the handheld might fill the role of a more affordable, less powerful console option.

Last year, Xbox president Sarah Bond emphasized Microsoft's commitment to pushing the boundaries with its next-generation hardware, aiming for the most significant technological leap in a generation. This comes at a time when the future of traditional consoles is under scrutiny. The Xbox Series X and S are reportedly struggling in the 'console war,' and Sony has hinted that the PlayStation 5 is nearing the second half of its lifecycle. Meanwhile, Nintendo is gearing up to launch the Switch 2 later this year. There's a growing concern that the video game console market could be facing challenges.

Phil Spencer has acknowledged that the console market has not seen significant growth in recent years, with a static customer base that tends to focus on a few major titles, leaving less room for other games. This sentiment was echoed by former Xbox executive Peter Moore, who suggested to IGN that Microsoft might be reevaluating the future of consoles. However, based on the latest report, it appears that Microsoft remains committed to the console market, planning to expand its hardware offerings in the coming years.