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Xbox’s Next-Gen Console is Reportedly Coming in 2027 – But a Handheld Might Drop This Year
March 11, 2025The future of Xbox just got a little clearer—or at least a lot more interesting. According to reports, Microsoft has fully greenlit the next-gen Xbox, with a 2027 release window locked in for what’s being described as a “premium successor” to the Xbox Series X. But that’s still years away. The more immediate surprise? A handheld Xbox device could be hitting shelves this year.
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That’s right—Microsoft is apparently getting into the portable gaming space, a move that might have seemed unlikely just a few years ago. But with Sony reportedly working on a new handheld and Nintendo set to release the Switch 2, it seems Microsoft isn’t content to sit this one out. If the rumors hold true, Xbox is about to shake up the gaming hardware scene—both in the living room and on the go.
Xbox’s Next-Gen Console – What’s Cooking for 2027?
Microsoft has been tight-lipped about what the next Xbox will bring to the table, but one thing is clear: it’s happening. Xbox President Sarah Bond previously reassured fans that the company is still committed to pushing the console market forward, describing the next-gen hardware as delivering “the largest technical leap that you will have ever seen in a hardware generation.”
So, what does that mean?
While specific details are still under wraps, the report suggests that the 2027 console will be a true powerhouse, surpassing even the Xbox Series X in raw power and capabilities. Whether that means ray-tracing advancements, AI-driven features, or a complete overhaul of Xbox’s ecosystem remains to be seen. One thing’s for sure: Microsoft is going big with this one.
A Handheld Xbox? The Rumors Are Getting Real
While the next-gen Xbox is still years away, Microsoft has another surprise lined up for this year—a handheld gaming device. The report claims that Xbox is working with an unnamed PC gaming company to develop a branded handheld console, codenamed “Keenan”.
If true, this would mark Microsoft’s first official foray into handheld gaming, and it could be a direct competitor to the Nintendo Switch, Steam Deck, and ASUS ROG Ally.
The device is said to feature a design that looks unmistakably Xbox, complete with a signature Xbox Guide button and familiar aesthetics. If it’s being developed with a PC gaming partner, there’s a strong chance it might run Windows-based gaming software, potentially allowing for Game Pass cloud gaming, PC gaming compatibility, and even native Xbox games on the go.
And here’s where things get even wilder—this isn’t the only Xbox handheld in the works. Reports suggest that Microsoft is also developing an in-house handheld, separate from this year’s model, which will release alongside the next-gen Xbox in 2027. Could this mean Xbox is going all-in on portable gaming?
Why is Xbox Pushing into Handheld Gaming Now?
It wasn’t too long ago that Xbox boss Phil Spencer hinted at handheld gaming as a possibility, but he always spoke about it as something years away. So why now?
Well, the gaming landscape is changing fast. The Nintendo Switch 2 is rumored to be launching soon, Sony is reportedly working on a portable PS5 device, and handheld PCs like the Steam Deck and ROG Ally have shown that there’s a massive market for powerful handheld gaming. With Xbox’s Game Pass ecosystem thriving, a handheld device would give players more flexibility, letting them take their games anywhere while staying connected to Xbox’s cloud services.
It’s also possible that Microsoft feels the need to reaffirm its presence in the gaming hardware market after facing ongoing speculation that it’s moving away from consoles in favor of a more multi-platform approach. By launching a handheld now, Microsoft might be trying to secure a foothold in the portable gaming space before its competitors lock down the market.
What’s Next for Xbox?
Microsoft has already been shaking things up with its decision to bring first-party Xbox games to PlayStation and Switch, but these new hardware developments prove that it’s still committed to keeping the Xbox brand alive and well.
With a next-gen console locked in for 2027 and a handheld potentially arriving this year, Xbox is clearly playing the long game. Whether this means a more unified Xbox ecosystem, a bigger push for cloud gaming, or a direct challenge to Nintendo and PlayStation in the handheld market, we’ll have to wait and see. One thing is clear, though—the future of Xbox is about to get very interesting.
While games are fun, it’s highly important to note that there’s more to life than sitting countless hours playing video games – there’s a purpose and more to life; seek out that purpose more often!
