Microsoft is making major moves in gaming hardware, reportedly developing an Xbox-branded gaming handheld in collaboration with a PC gaming OEM. This handheld device, expected to launch in 2025, could mark Xbox’s entry into the growing portable gaming market. Meanwhile, a next-generation Xbox console and a first-party gaming handheld are also rumored to be in development, targeting a 2027 release.
Xbox’s Move Into Handheld Gaming
According to reports from Windows Central, Microsoft is working with a PC gaming OEM to create a handheld device that aligns with Xbox’s branding. Codenamed “Keenan,” this device is expected to feature:
✅ Xbox-centric design with a recognizable aesthetic
✅ Xbox Guide button for seamless navigation
✅ PC-focused architecture, similar to the Steam Deck or Asus ROG Ally
While the specific manufacturer remains undisclosed, the device is expected to blend Xbox’s gaming ecosystem with PC gaming capabilities, potentially expanding Xbox Game Pass’s reach.
Next-Gen Xbox Console and First-Party Handheld in 2027
Microsoft is not just stopping at a handheld. A successor to the Xbox Series X/S, which has been in development since 2021, is reportedly fully greenlit and set for a 2027 release. The next-gen Xbox is expected to:
✅ Be more integrated with Windows than ever
✅ Deliver premium performance surpassing the Xbox Series X
Additionally, Microsoft is rumored to be working on a first-party gaming handheld, separate from the PC gaming OEM project. This means that in 2027, Xbox could launch both a new console and a dedicated handheld device under its own brand.
Xbox’s Strategy for the Future
Xbox’s hardware sales have lagged behind PlayStation in recent years, but Microsoft has been expanding its gaming ecosystem through Xbox Game Pass, cloud gaming, and major studio acquisitions like Activision-Blizzard.
With Xbox president Sarah Bond confirming that Microsoft is moving “full speed ahead” on next-generation hardware, and Xbox chief Phil Spencer hinting at future handheld plans, 2027 could be a turning point for Xbox’s gaming strategy.
