The next Xbox might be one you can hold in your hands

Summary

Microsoft is reportedly collaborating with a PC gaming OEM to develop an “Xbox-brand gaming handheld” which could launch later this year.
A successor to the Xbox Series X/S is in the works and is targeting a 2027 release.
Microsoft is reportedly also working on a first-party Xbox gaming handheld, which could release in 2027 as well.

This console generation has been interesting for Xbox, which has experienced a drop in hardware sales amid a growing user base driven by Xbox Game Pass and notable studio acquisitions, including Activision-Blizzard. Despite slow hardware sales and a recent marketing focus suggesting most devices could be an Xbox, Microsoft has committed to developing new hardware, potentially launching a PC gaming handheld soon and a new console in 2027.

According to Windows Central, Microsoft is collaborating with a PC gaming OEM to create an “Xbox-branded gaming handheld,” expected to debut in 2025. Codenamed “Keenan,” this handheld is anticipated to feature a distinct Xbox appearance, an Xbox guide button, and embody “Xbox design sensibilities.” The specific OEM involved in the handheld’s production is still unknown, but it is expected to be PC-focused, akin to the Steam Deck or an Asus ROG Ally.

Asus ROG Ally X

Dimensions: 11.02 x 4.37 x 0.97-inches
Number of Games Included: Steam and Xbox Games Pass
Playing Time: 3-4 hours
Brand: Asus
Weight: 1.49lbs (678g)
Chipset: AMD Ryzen Z1 Extreme Processor

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The next Xbox console could come in 2027

A first-party gaming handheld is also reportedly in the works

Microsoft doesn’t just have gaming handhelds on its mind. A successor to the Xbox Series X/S has been in the works since 2021, and Windows Central reports that Microsoft’s new console has been “fully greenlit all the way up to CEO Satya Nadella” and is in full production. The next-generation Xbox console is said to be “closer to Windows than ever” and “a premium successor to the powerful Xbox Series X” and is targeting a 2027 release.

But a new console isn’t all that Microsoft has planned. Windows Central also reports that Microsoft could release a first-party Xbox gaming handheld in 2027, independent of an Xbox-branded PC gaming OEM like the one possibly coming this year. This means that in 2027, Xbox could release a new console and gaming handheld device.

Last year, Xbox president Sarah Bond stated that Microsoft is “moving full speed ahead on our next generation hardware,” while Xbox chief Phil Spencer remarked that there is an expectation to “do something” regarding gaming handhelds. It appears that Xbox is advancing rapidly with its plans for next-generation hardware. With Xbox hardware sales falling behind PlayStation in the last two generations, 2027 could be the year for a significant turnaround.