Next-gen Xbox reportedly coming in 2027, handheld rumored for this year

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Next-gen Xbox reportedly coming in 2027, handheld rumored for this year

Xbox has reportedly partnered with a company to launch a branded handheld this year, ahead of the next generation Xbox consoles in 2027.

Tom West

Published 11 Mar 2025

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Xbox Series X|STom West
According to a new report, Xbox's next generation consoles are reportedly planned for 2027 but we could see an "Xbox-branded" third party handheld arrive this year. With so many Xbox exclusives heading to other platforms, many fans have questioned Xbox's future with dedicated hardware, but it seems the company is still all in.

An "Xbox-branded" handheld device could launch in 2025

  • Microsoft reportedly plans to launch its next generation Xbox consoles in 2027
  • An "Xbox-branded" third-party handheld could launch later this year
  • Multiple new Xbox controller options and an official Xbox handheld are also said to be planned

In a new report from Windows Central's Jez Corden, Microsoft's hardware team is hard at work on a slew of new hardware options. A premium Xbox Series X|S successor and official Xbox handheld have reportedly been greenlit alongside "several new controller options" that have "direct-to-cloud connectivity," and could potentially arrive in 2027. Before then, however, Microsoft has apparently partnered with a third-party PC OEM for an "Xbox-branded" handheld, which could launch later this year.

In terms of the next generation of Xbox consoles, very little is known, but Corden says that the consoles will support backwards compatibility. That was expected, as last year Xbox president Sarah Bond revealed that she had put together a team to focus on game preservation. The report also notes that the next generation of consoles "will be closer to Windows than ever before," which will make it easier for developers to port their games from PC to Xbox. That closer link to PC could mean third-party storefronts like Steam and GOG could be available on the consoles too.

As for the official Xbox handheld device, Corden doesn't share any details, but Xbox boss Phil Spencer has previously confirmed that it's in the works. Spencer had said the device is "years away," so a 2027 release would make sense.

That doesn't mean we won't have a handheld to play with soon, however, as Microsoft has reportedly partnered with a PC company for an "Xbox-branded" device. It's apparently being designed under the codename Keenan and "will look unmistakably 'Xbox,'" featuring an official Xbox guide button.

It's said to be a PC-orientated device, so it'll likely have similar software to other handhelds like the Asus ROG Ally, packing full Windows with a Microsoft Store and PC Game Pass. If everything goes to plan, we could see the device launch later in 2025.

Would you like to play some of the best Game Pass games on an Xbox-themed handheld later this year? Drop a comment below and let us know!
Xbox Series X|SIndustry News
Written by Tom West
Tom has been playing video games since he was old enough to hold a controller, experimenting with a number of systems until he eventually fell in love with Xbox. With a passion for the platform, he decided to make a career out of it, and now happily spends his days writing about that which he loves. If he’s not hunting for Xbox achievements, you’ll likely find him somewhere in The Elder Scrolls Online or fighting for survival in Battlefield.