March 16, 2025, 9:21 am | Read time: 3 minutes
The handheld market is booming, and, as we all know, Microsoft would also like to benefit from this with its Xbox. The company is, therefore, planning its own console in this area, which, according to rumors, could be released very soon.
The current Xbox generation is a mixed bag for Microsoft. Sales figures are falling well short of expectations. There are several possible reasons for this, but one of them is handheld consoles. A lot has happened in this sector since the release of the Xbox Series X/S 2020. In 2017, the Nintendo Switch laid the foundation for a veritable boom in handheld consoles, which is why Xbox is now also planning a corresponding device that could even be released this year. And that’s not all — according to rumors, a powerful next-gen Xbox will follow in 2027.
Microsoft Is Working on a Handheld Console
Microsoft is thus continuing its hardware strategy. The new rumors about the Xbox handheld are based on a report from Windows Central. According to the report, the portable console will be released as early as 2025, which would be a bit of a surprise.
Microsoft is currently developing a handheld device under the codename “Keenan,” which is to be strongly based on the design of the Xbox. This portable gaming device will most likely run Windows 11, which means it will not only support the Microsoft Store and PC Game Pass but also third-party software such as Steam.
Xbox Handheld Could Appear as Early as 2025
Incidentally, the tight time frame is possible because Microsoft is apparently not building its Xbox handheld alone. Instead, the company is relying on collaboration with a well-known manufacturer with relevant expertise. Possible candidates are Asus, Lenovo, MSI, or Razer.
This would be remarkable in that all of the names mentioned already have their own handheld consoles to begin with, which would be in direct competition with the new Xbox. Asus is very successful with its ROG Ally (X), and Lenovo is successful with its Legion Go. MSI also offers a handheld console with the Claw, as does Razer with the Edge, although there is certainly room for improvement in terms of functionality.
In comparison to these alternatives, Microsoft is apparently aiming to score points with the Xbox handheld with a console tailored to the Game Bar.
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Next-Gen Xbox Planned for 2027
In addition to the handheld, Microsoft is apparently already working on the next generation of its popular home console series. “As far as I know, Microsoft’s hardware plans for the next generation include a premium successor to the powerful Xbox Series X, alongside its own Xbox gaming handheld and several new controller options. For now, these new console devices appear to be planned for 2027,” says the report from Windows Central.
However, this refers to a successor to the Xbox Series X. A follow-up model for the Series S, on the other hand, does not appear to be planned. Microsoft is focusing more on a high-end model that will be closely integrated with Windows. This could reduce the development effort for games and, at the same time, maintain backward compatibility with older Xbox titles.
The Xbox handheld, which is likely to be priced below a new Xbox, could then directly take the place in the portfolio that has been vacated. According to the report, the latter is currently planned for 2027. This would also fit in with the previous release rhythm of the Microsoft console. There were also seven years between the Xbox One and the Series X/S — the former was released in 2013, the latter in 2020. However, the gap to the Xbox 360 was actually eight years (2005).