Next-Gen Xbox Console Aiming for 2027 Release, Handheld Device Expected This Year

Microsoft is gearing up to introduce its next-generation Xbox Series X/S console, expected to launch in 2027. In addition to this, there are rumors about a new Xbox handheld device set to be unveiled later this year.
According to reports from Windows Central, the new console has been approved by Microsoft’s CEO Satya Nadella and is currently in full production. While specific details remain scarce, the source describes it as a “premium successor” to the existing and powerful Xbox Series X. Microsoft’s plans for the new device emphasize significant advancements in technology and gaming experience.
Last year, Sarah Bond, the president of Xbox, assured fans that Microsoft remains committed to the console market. She stated that the company is dedicated to their “next-generation road map,” and is focused on delivering the most impactful upgrade seen between console generations. This commitment comes during a time when some fans expressed concerns about Microsoft’s investment in gaming hardware.
Although 2027 may seem far away, Microsoft has more immediate plans in the works. They are reportedly collaborating with an unnamed PC gaming manufacturer to launch an Xbox-branded handheld gaming device later this year. This device, known by its codename “Keenan,” is designed to embody the Xbox aesthetic, featuring familiar design elements and an Xbox guide button.
Phil Spencer, the head of Xbox, first mentioned the idea of a handheld console in 2017 and has revisited this topic multiple times in the past year. While he initially suggested that the release of such devices might be years away, the impending release of the next Nintendo Switch and rumors surrounding a portable PlayStation 5 may have driven Microsoft to expedite their plans.
Interestingly, Windows Central reports that Microsoft is also working on its own internal version of a gaming handheld, separate from this year’s collaboration. This device is intended to be launched alongside the Series X/S successor and new controller options in 2027.
Microsoft’s dedication to the console market has come into question recently, particularly after the company announced that select first-party Xbox games would be available on other platforms. While they are increasing their multiplatform strategy in 2025, Xbox has reaffirmed its commitment to hardware. Last year, the company revealed three new Xbox console variants, reiterating its focus on future gaming technologies.
As the gaming landscape evolves, with competitors like Sony also reportedly developing handheld devices, Microsoft’s plans appear to be a strategic move to remain relevant in a fast-changing market. The anticipation of both the new Xbox console and the handheld device reflects the tech giant’s ambition to innovate and lead in the gaming industry for years to come.