Microsoft Plans Xbox Handheld for 2025, New Console for 2027

Microsoft is developing a new Xbox-branded handheld gaming device set for late 2025, alongside a next-generation Xbox console planned for 2027, according to a Windows Central report. The handheld aims to expand Xbox’s hardware lineup, while the next-gen console is expected to further integrate Windows and cloud features.

The handheld Xbox gaming console is currently codenamed “Keenan,” and will be the first ever official Xbox gaming handheld. The handheld will reportedly have the iconic Xbox controller layout, which includes the Xbox guide button and Xbox design sensibilities.

Windows Central speculates that the upcoming Xbox handheld will run on Windows, allowing compatibility with the Microsoft Store and PC Game Pass. The speculation is based on preexisting gaming handheld trends alongside the fact that Windows is a Microsoft product.

The successor to the Xbox Series X/S has been greenlit by CEO Satya Nadella. Though no codename has been given for the next-gen Xbox console, the console will supposedly support backwards compatibility. The upcoming next-gen Xbox console will presumably be the “closer to Windows than ever before,” meaning game developers will have an easier time porting titles to PC.

Windows Central was told that the new controllers for the next-gen console will have direct-to-cloud connectivity, which will “more intelligently allow players to switch them between different devices.”

Microsoft currently has no official Xbox handhelds on the market, but they have had mobile compatibility for select Xbox titles since 2020 – which allowed gamers to connect a controller to their mobile devices and experience Xbox games on the go.

The Xbox Series X/S released in 2020, and sold a cumulative 30 million units as February 2025, lagging substantially behind PlayStation 5’s 75 million units sold by the same date, a console that also released in 2020.