Who said again that Microsoft was pulling out of the console business? Apparently, the tech giant is planning the exact opposite: according to reliable industry sources, an Xbox handheld is set to appear as early as the end of 2025, while the next console generation is targeted for 2027.
Jez Corden from Windows Central reportedthat Microsoft is by no means stepping on the brakes. "For starters, Microsoft appears to be working with a PC gaming OEM (think ASUS, Lenovo, MSI, Razer, etc.) on an Xbox-branded gaming handheld. Surprisingly, this is planned for late 2025 - if all goes to plan." says Corden.
This handheld is codenamed "Keenan" and should look unmistakably like an Xbox - including the official Xbox Guide button and typical design. As it is a partner device, similar to Lenovo's collaboration with Valve for the Steam Deck, it will presumably be strongly PC-oriented. "It will probably run full Windows and center on Microsoft Store and PC Game Pass - but things like Steam could also be installable"explains Corden.
Next-gen Xbox to follow in 2027
Also on the future of Xbox consoles says Corden: "Our sources indicate that Microsoft's internal successor to the Xbox Series X|S has already gotten the green light all the way up to CEO Satya Nadella. The current plan for next-generation hardware includes a premium successor to the Series X, a dedicated Xbox gaming handheld and several new controller options. The release timeframe? Probably 2027."
With these plans, Microsoft is once again showing that it wants to actively shape the future of gaming. Despite some missteps in recent years, the company remains ambitious. A Xbox handheldthat directly addresses the PC market? Makes sense! The PC is increasingly becoming the dominant platform, and Microsoft is already ideally positioned with Game Pass and Windows.
This brings the idea of an "everything is an Xbox" strategy even closer. Microsoft wants to make the gaming ecosystem more flexible - and this could be the right move. Now it's up to them to deliver. So come on, Microsoft! Convince us that the future of console gaming is far from over.