This console generation has been interestingfor Xbox, which has experienced a drop inhardware salesamid a growing user base driven byXbox Game Passand notable studio acquisitions, includingActivision-Blizzard. Despite slow hardware sales and arecent marketing focussuggesting most devices could be an Xbox, Microsoft has committed to developing new hardware, potentially launching aPC gaming handheldsoon and a new console in 2027.

According toWindows Central, Microsoft is collaborating with a PC gaming OEM to create an “Xbox-branded gaming handheld,” expected to debut in 2025. Codenamed “Keenan,” this handheld is anticipated to feature a distinct Xbox appearance, an Xbox guide button, and embody “Xbox design sensibilities.” The specific OEM involved in the handheld’s production is still unknown, but it is expected to be PC-focused, akin to the Steam Deck or an Asus ROG Ally.

Asus ROG Ally X tag

Asus ROG Ally X

Sony just updated the PS3 in 2025 - here’s what’s going on

Sony has launched an important update for the nearly 20-year-old PS3 console.

The next Xbox console could come in 2027

A first-party gaming handheld is also reportedly in the works

Microsoft doesn’t just have gaming handhelds on its mind. A successor to the Xbox Series X/S has been in the works since 2021, and Windows Central reports that Microsoft’s new console has been “fully greenlit all the way up to CEO Satya Nadella” and is in full production. The next-generation Xbox console is said to be “closer to Windows than ever” and “a premium successor to the powerful Xbox Series X” and is targeting a 2027 release.

But a new console isn’t all that Microsoft has planned. Windows Central also reports that Microsoft could release a first-party Xbox gaming handheld in 2027, independent of an Xbox-branded PC gaming OEM like the one possibly coming this year. This means that in 2027, Xbox could release a new console and gaming handheld device.

Sony PlayStation 3 on blue background.

Last year, Xbox presidentSarah Bond statedthat Microsoft is “moving full speed ahead on our next generation hardware,” while Xbox chiefPhil Spencer remarkedthat there is an expectation to “do something” regarding gaming handhelds. It appears that Xbox is advancing rapidly with its plans for next-generation hardware. With Xbox hardware sales falling behind PlayStation in the last two generations, 2027 could be the year for a significant turnaround.

This gadget turned my phone into a handheld gaming powerhouse

The GameSir X3 Pro mobile controller has microswitch triggers, anti-drift sticks, and a built-in fan to turn your phone into a handheld console.

Master Chief on Xbox

GameSir X3 Pro in a hand playing a first person shooter game.