Next-gen Xbox set for 2027, with a handheld console coming later this year

Microsoft is reportedly expanding its gaming hardware lineup, with plans to launch an Xbox-branded handheld device later this year and a next-generation Xbox console in 2027. Many rumours were already pointing in this direction, but according to Windows Central, Microsoft has already laid out all the plans, and soon enough, we’ll see the results.

Xbox handheld: Project “Keenan”

Codenamed “Keenan”, Microsoft’s upcoming Xbox handheld is being developed with a leading PC gaming hardware manufacturer. The device will feature classic Xbox design elements, including the iconic Xbox guide button, ensuring a familiar feel for players.

Running on a full version of Windows, this handheld will provide access to the Microsoft Store and PC Game Pass while supporting third-party gaming platforms like Steam.

With Microsoft entering the portable gaming space, this new device could directly compete with Nintendo’s next-gen Switch and other handheld gaming systems.

Next-Gen Xbox console

Microsoft has reportedly approved the development of a new Xbox console, set to launch in 2027. This high-end next-gen console aims to bring significant technological improvements over the current Xbox Series X|S.

Despite its push into handheld gaming, Microsoft remains fully committed to the console market, ensuring Xbox continues to evolve and stay competitive. Microsoft has been bringing its formerly exclusive console games, such as Forza Horizon 5, to PlayStation to boost its overall profitability.

Integration & future plans

Beyond new hardware, Microsoft is also working on deeper integration between Windows and Xbox. Plans include bringing the Xbox OS user interface to Windows, creating a more unified gaming experience across devices.

In January, Jason Ronald, Microsoft’s VP of ‘Next Generation,’ told The Verge that the company intends to integrate Xbox and Windows experiences for PC gaming handhelds produced by original equipment manufacturers (OEMs), also known as third-party hardware makers.

This move will focus on:

• Better game compatibility
• Improved controller support
• A more content-driven experience, shifting away from the traditional Windows desktop interface

What this means for gamers

Microsoft’s latest moves highlight its long-term strategy of offering versatile gaming options across multiple platforms. With the introduction of an Xbox handheld and the development of a next-gen console, the company is looking to cater to a wide range of gaming preferences and strengthen its position in the gaming industry.