Microsoft’s Next-Gen Xbox Plans: Handheld in 2025, Premium Console in 2027
Microsoft is making bold moves in the gaming industry, preparing to launch an Xbox-branded handheld device in 2025, followed by a next-generation Xbox console in 2027. These upcoming devices aim to expand the Xbox ecosystem, offering players more ways to experience their favorite games.
Project Keenan: The Xbox Handheld Arrives in 2025
Microsoft is entering the handheld gaming market with a new device, codenamed Project Keenan. Scheduled for release in late 2025, this handheld will feature a dedicated Xbox design, complete with the recognizable guide button and brand aesthetics.
Unlike previous portable gaming efforts, this device is expected to support full PC functionality, allowing users to install third-party applications and access multiple gaming storefronts. This means players could enjoy not only Xbox Game Pass titles but also games from other platforms, making it one of the most versatile handheld devices available.
Additionally, the handheld will likely integrate with cloud gaming services, allowing players to stream games on the go. If executed correctly, this could position Xbox as a direct competitor to other popular handhelds while maintaining strong ties to its PC and console ecosystem.

The Next-Gen Xbox Console: Targeting 2027
Looking further ahead, Microsoft has plans for a premium successor to the Xbox Series X, currently set for a 2027 release. Unlike previous consoles, this new system is expected to align more closely with PC gaming, allowing easier game development across platforms.
One of the major goals for the next-gen Xbox is to enhance backward compatibility, ensuring that existing Xbox libraries remain playable. Additionally, Microsoft is reportedly considering expanding support for third-party storefronts, making it easier for users to access games from different sources.
Another key focus will be on cloud gaming and AI integration, further enhancing the console’s capabilities. If successful, this approach could create a seamless experience between console and PC gaming, giving players even more flexibility.

Strategic Impact and Market Positioning
By launching a handheld gaming device and a next-gen console, Microsoft is positioning itself to compete on multiple fronts. The handheld Xbox could appeal to portable gaming enthusiasts, offering a seamless way to play both Xbox and PC games anywhere. Meanwhile, the next-gen console aims to push performance, versatility, and integration, ensuring Xbox remains competitive in the gaming landscape.
These upcoming devices also highlight Microsoft’s continued commitment to expanding its ecosystem beyond traditional consoles. The goal is to create a gaming network that connects seamlessly across all devices, giving players the ability to enjoy their library on console, PC, and handheld platforms.

What This Means for Xbox Gamers
For Xbox fans, these developments are exciting news. The handheld console could introduce a new level of portability, while the next-gen Xbox system aims to deliver cutting-edge performance. Here’s what players can expect:
- More gaming options: The handheld and next-gen console will offer new ways to experience Xbox games, whether at home or on the go.
- Enhanced backward compatibility: The new console will likely allow players to access their existing libraries without limitations.
- Seamless ecosystem: Microsoft’s long-term vision is to make Xbox gaming accessible across multiple platforms, eliminating the need for traditional console exclusivity.
These advancements could redefine the way players engage with the Xbox ecosystem, offering a more connected and versatile gaming future.

Conclusion
Microsoft’s hardware strategy demonstrates its commitment to innovation, ensuring that Xbox remains a dominant force in the gaming industry. The Project Keenan handheld will introduce new portable gaming experiences, while the 2027 Xbox console is set to elevate next-gen gaming to new heights.
With a focus on cross-platform integration, cloud gaming, and enhanced compatibility, Microsoft’s vision for the future of Xbox is clear: a seamless, unified gaming experience that gives players more flexibility than ever before.