Microsoft is reportedly setting its sights on the future of gaming hardware with ambitious plans for a next-generation Xbox and an Xbox-branded gaming handheld. According to a recent report by Windows Central, a full next-gen Xbox, poised to be a premium successor to the Xbox Series X, is already in production and slated for release in 2027. Additionally, a partner PC gaming handheld, codenamed Keenan, is expected to hit the market in late 2025.
While Microsoft has yet to officially comment on these developments, its gaming executives have hinted at such plans in various interviews. Jason Ronald, Microsoft’s Vice President of 'Next Generation,' revealed to The Verge in January that the company aims to integrate Xbox and Windows experiences for PC gaming handhelds produced by original equipment manufacturers (OEMs) like Asus, Lenovo, and Razer. However, it's important to note that Keenan is not a first-party Xbox handheld; Phil Spencer, Microsoft's gaming chief, has suggested that a first-party Xbox handheld is still years away.
Windows Central also reports that the upcoming next-gen Xbox has received full approval from Microsoft CEO Satya Nadella. This new console is anticipated to be more akin to a PC than any previous Xbox, with support for third-party storefronts such as Steam, the Epic Games Store, and GOG. Backwards compatibility will continue to be a key feature. Xbox president Sarah Bond previously stated that Microsoft is "moving full speed ahead on our next generation hardware, focused on delivering the biggest technological leap ever in a generation."
The landscape of video game consoles is currently under scrutiny. The Xbox Series X and S are struggling in the 'console war,' and Sony has indicated that the PlayStation 5 is entering the second half of its lifecycle. Meanwhile, Nintendo is preparing to launch the Switch 2 later this year. Amidst these developments, there is growing concern about the viability of traditional video game consoles.
Phil Spencer has acknowledged that the console market has not grown significantly in recent years, with a stagnant customer base that predominantly plays a few major titles. This situation has sparked discussions within Microsoft about the future of consoles, as noted by former Xbox executive Peter Moore in an interview with IGN last year. However, the latest report suggests that Microsoft remains committed to the console market and is actively planning for its future with these new hardware offerings.
