A recent report from Windows Central sheds light on Microsoft's ambitious plans for its video game hardware, revealing that a next-generation Xbox console is slated for release in 2027, while an Xbox-branded gaming handheld is expected to hit the market in late 2025. The handheld, codenamed Keenan, is currently in development but is not a first-party Xbox device. Instead, it's a partner PC gaming handheld, aligning with Microsoft's strategy to integrate Xbox and Windows experiences for third-party hardware manufacturers like Asus, Lenovo, and Razer.
Microsoft's gaming executives have hinted at these developments in various interviews. Jason Ronald, the VP of 'Next Generation' at Microsoft, spoke to The Verge in January about the company's intentions to merge Xbox and Windows platforms for PC gaming handhelds. Meanwhile, Xbox gaming boss Phil Spencer has suggested that a true first-party Xbox handheld remains years away.
Next-Gen Xbox Details
The next-gen Xbox, fully endorsed by Microsoft CEO Satya Nadella, is described as a premium successor to the Xbox Series X. This console, along with new controllers and a first-party Xbox gaming handheld, is set to complete Microsoft's console lineup by 2027. Interestingly, there are no plans for a direct next-gen successor to the Xbox Series S, hinting that the upcoming handheld might fill the niche for a less powerful, more affordable option.
Windows Central suggests that the new Xbox will resemble a PC more than any previous Xbox, with support for third-party storefronts like Steam, Epic Games Store, and GOG. Continued backwards compatibility is also expected, ensuring a seamless gaming experience for users.
Last year, Xbox president Sarah Bond emphasized Microsoft's commitment to advancing their next-generation hardware, promising the biggest technological leap ever seen in a console generation.
The Future of Consoles
The broader context of the console market is one of uncertainty and change. The Xbox Series X and S are reportedly struggling in the ongoing 'console war,' while Sony has indicated that the PlayStation 5 is entering the latter half of its lifecycle. Nintendo is gearing up to release the Switch 2 later this year, amidst growing concerns about the sustainability of the traditional console business.
Phil Spencer has noted in interviews that the console market has not seen significant growth, with a large but stagnant customer base predominantly engaging with a few blockbuster titles. This situation leaves little room for smaller games. Former Xbox executive Peter Moore also raised questions about the future of consoles in a discussion with IGN last year.
However, based on the latest report, it appears that Microsoft remains committed to the console market, betting on innovative hardware to rejuvenate its position and potentially redefine the gaming landscape.
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