Image credit: EurogameMicrosoft is reportedly making significant strides in its gaming division, with plans to launch its next-generation Xbox Series X/S successor in the year 2027. This new console is generating considerable excitement among gamers and industry insiders alike. In addition to this, there is a highly anticipated handheld Xbox device that is expected to make its debut later this year, further expanding Microsoft’s gaming portfolio.
According to a report from Windows Central, the development of the successor to the Xbox Series X/S has received the green light from none other than Microsoft CEO Satya Nadella, indicating the high level of commitment and investment the company is placing in this project. The new console is currently in full production, although the publication has not disclosed many specific details about its features or capabilities. However, it has been described as a premium successor to the already powerful Xbox Series X, which suggests that it will offer enhanced performance and advanced technology, with a release date firmly set for 2027.
Microsoft has been transparent about its intentions, having already confirmed that it is actively developing a successor to the Series X/S. Last year, Xbox president Sarah Bond addressed concerns from fans who were anxious that the company might be considering a retreat from the console market. She reassured them by stating that Microsoft is "invested in [their] next-generation roadmap" and is "focused on delivering the largest technical leap that you will have ever seen in a hardware generation." This commitment reflects Microsoft’s dedication to innovation and its desire to remain a leader in the gaming industry.
While 2027 may seem like a long way off, Windows Central has also reported that Microsoft has other exciting Xbox hardware plans that are set to come to fruition much sooner than that. The company is said to be collaborating with an unnamed "PC gaming OEM" to launch an Xbox-branded gaming handheld later this year. This device, which is reportedly being developed under the codename Keenan, is expected to feature a design that is unmistakably 'Xbox', incorporating familiar design elements that fans have come to recognize and love, including an Xbox guide button. This move not only diversifies Microsoft’s gaming offerings but also positions the company to capture a broader audience in the gaming market.
The concept of an Xbox handheld is nothing new. Back in 2017, Xbox head Phil Spencer revealed that Microsoft had "roughly designed an Xbox handheld." However, he has repeatedly returned to this topic over the last year, fueling speculation that the project may have been revived. When questioned about a potential Xbox handheld last November, Spencer suggested that any such devices would still be a few years away. Yet, with the Switch 2 looming and reports indicating that Sony is also working on its own handheld device in the form of a portable PS5, it seems Microsoft felt the need to accelerate its plans.
Interestingly, Windows Central claims that Microsoft is also internally developing its own Xbox gaming handheld, separate from this year's partner machine, which is set to release alongside its Series X/S successor and "several new controller options" in 2027.
All of this comes after a 2024 that saw Microsoft's commitment to the console market repeatedly questioned, particularly following its decision to bring select first-party Xbox games to other platforms. While this multiplatform strategy is accelerating in 2025, the company has been keen to reiterate its commitment to the Xbox hardware business—last year announcing three new Xbox console variants alongside discussions of its next-gen plans.
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