Xbox Handheld Reportedly Releasing Later in 2025, Next-Gen in 2027

A new report from Windows Central makes it clear that Microsoft is not planning to abandon making Xbox gaming hardware anytime soon. In fact, its renewed efforts will begin with an Xbox-branded gaming handheld sometime later this year. Then, the next generation of Xbox hardware is reportedly targeting a 2027 release.

That report outlines that Xbox’s plans start with a branded gaming handheld codenamed “Keenan.” Microsoft apparently won’t be manufacturing this device itself; instead, it will work with an original equipment manufacturer (which is, as of now, unknown) to create a handheld that will “look unmistakably Xbox” and feature “an official Xbox guide button, and Xbox design sensibilities.” Think of it as a Steam Deck with Xbox branding.

While that is more of an Xbox-branded portable PC, Windows Central explained that Xbox is still planning to internally create a handheld in the future. It will allegedly be part of Xbox’s next-generation gaming efforts, which the report claims CEO Satya Nadella has approved. Windows Central believes the next generation of Xbox hardware will launch in 2027 and include a premium console like Xbox Series X, an Xbox gaming handheld, and new Xbox controllers.

This information should all be exciting for Xbox fans to hear, as this has been an odd console generation for Microsoft. Although the Xbox Series X and S are solid pieces of gaming hardware, their sales have lagged behind the likes of PS5 and Nintendo Switch. Recently, Microsoft has committed to a multiplatform strategy that mostly rids its own hardware of exclusive games. Games like Sea of Thieves and Age of Mythology: Retold have already come to PS5, while PS5 ports of critically acclaimed Xbox exclusives like Forza Horizon 5 and Indiana Jones and the Great Circle are on the way.

This change in release strategy made some fans worry about the future of Xbox as a gaming hardware brand, but this new report gives us some renewed faith that Xbox will stick around for at least another console generation. If Windows Central’s report is accurate, we’re months out from getting an Xbox-branded portable PC and just over two-and-a-half years away from a brand-new Xbox console.

Until then, there are plenty of first-party Xbox games to look forward to. South of Midnight, The Outer Worlds 2, Towerborne for console, and Ninja Gaiden 4 are all slated for a 2025 release, while Fable will arrive sometime in 2026. Games like Clockwork Revolution, Contraband, Everwild, Gears of War: E-Day, OD, Perfect Dark, and State of Decay 3 are all in development for Xbox Series X|S without a release date too. Hopefully, they all arrive before the next generation of Xbox begins.