Xbox’s 2025 Gaming Handheld: Next-Gen Hardware Plans Revealed

Xbox’s Next-Gen Hardware Plans Emerge: Handhelds and Beyond

Microsoft is signaling a significant expansion of its Xbox hardware ecosystem, perhaps including a handheld device and a next-generation console, aiming to meet gamers where thay are. The company’s increased focus on its addressable monthly active user base, bolstered by the Activision-Blizzard acquisition, highlights a strategy of serving users across multiple platforms [1].

Xbox Handheld in the Works: “Keenan”

Sources indicate that Microsoft is collaborating wiht a PC gaming OEM to develop an Xbox-branded gaming handheld,codenamed “Keenan.” This device,slated for a potential late 2025 release,is expected to bear a distinct Xbox design,including an official Xbox guide button.This move marks a significant shift towards a more PC-oriented handheld experience, similar to Lenovo’s SteamOS partnership with Valve [2].

• PC-Oriented: The handheld will likely run full Windows, providing access to the Microsoft Store and PC Game Pass, alongside Steam.
• Research Platform: “Keenan” will serve as a testbed for new Windows 11 device-aware capabilities while minimizing third-party bloatware, typical of devices like the Lenovo Legion Go and ASUS ROG Ally.
• Enhanced User Experience: Microsoft is expected to leverage widgets on the Xbox Game Bar on PC to control TDP and fan speed, providing a more streamlined OS experience for controller use.

The handheld’s development aligns with Microsoft’s broader strategy of bridging the gap between console and PC gaming, offering players greater flexibility and choice. “Microsoft seems keen to continue servicing its legacy Xbox audience with new hardware,” reinforcing the company’s commitment to hardware innovation.

Next-Gen Console and Controllers on the Horizon

Beyond the handheld, Microsoft’s internal successor to the Xbox Series X|S platform has reportedly received full approval, including from CEO Satya Nadella. Planned for a potential 2027 release, the next generation of Xbox hardware may feature:

• A premium successor to the Xbox Series X, offering enhanced performance and capabilities.
• An in-house Xbox gaming handheld.
• Several new controller options, providing players with greater customization and control.

These plans, while subject to change, underscore Microsoft’s long-term commitment to the console market and its desire to innovate across multiple hardware categories.

leveraging Synergies: PC and Console Convergence

By linking xbox to Windows, Microsoft aims to reduce the need to build a system entirely aligned with PlayStation regarding features and power. This strategic alignment allows Microsoft to target a more powerful console, akin to higher-end PCs, which could simplify optimization for developers targeting Windows PC versions specifically for the next-gen Xbox console.

This approach could foster the growth of the “Xbox Play Anywhere” initiative, further blurring the lines between console and PC gaming, and providing players with a more seamless experience across devices.

Meeting Players Where They Are

The multi-device future of Xbox revolves around meeting players where they are, irrespective of their device, geography, or play style. The acquisition of Activision-Blizzard accelerated this vision, establishing Microsoft as a prominent gaming company for the foreseeable future. With a robust lineup of upcoming Xbox games and the potential for integration between Game Pass, Battle.net, cloud services, and mobile games, Microsoft’s ecosystem offers compelling opportunities for gamers.

As Microsoft positions itself for the future, it’s clear that hardware remains a critical component of its strategy. “Xbox’s multi-device future revolves around meeting players exactly where they are, nonetheless of device, geography, or play style.” This commitment underscores the company’s dedication to providing gamers with unparalleled choice and flexibility.

Stay tuned for further updates as more details emerge about Microsoft’s next-generation Xbox hardware plans. Follow us for in-depth analysis and the latest news in the world of gaming!

[1] Microsoft Q2 2025 Financial Results.

[2] Lenovo Legion Go announcement.

How will Microsoft effectively communicate the value proposition of both “Keenan” and the next-gen console to consumers who may already own a capable gaming PC?

Exclusive Interview: Industry Analyst on Xbox’s Handheld Gaming and Next-Gen Console Plans

Microsoft’s rumored handheld console, codenamed ‘Keenan,’ and whispers of a next-generation Xbox console have ignited excitement in the gaming community. We sat down with Anya Sharma,senior Gaming Analyst at TechForward Insights,to unpack Microsoft’s potential future in gaming hardware.

Xbox’s Bold New Direction: A Conversation with Anya Sharma

Archyde: Anya, thanks for joining us. The biggest buzz revolves around this “Keenan” handheld. what’s your initial reaction to the potential of an Xbox handheld device?

Anya Sharma: My pleasure! An Xbox handheld is a logical next step. Microsoft has been building a strong cross-platform ecosystem with Game Pass and Xbox Play Anywhere. A dedicated handheld solidifies their commitment to meeting gamers wherever they are. It’s a direct challenge to the likes of Steam Deck and ASUS ROG Ally,but with the Xbox brand behind it,it could be a serious contender that expands the Xbox addressable market.

Handheld Strategy: Windows, Game Pass, and PC Gaming Convergence

Archyde: Reports suggest “Keenan” will run full Windows, not a custom OS. How important is that decision, and what are the implications for the user experience?

Anya Sharma: Running full Windows is a double-edged sword. On one hand, it offers unparalleled access to the Microsoft Store, Steam, Epic Games Store, PC Game Pass and countless other PC games and applications. Gamers gain tremendous versatility. The downside is possibly a less streamlined experience,especially when compared to the consoles. Microsoft needs to nail the user interface and ensure it’s optimized for controller use.The reported Xbox Game Bar widgets for TDP control are a key positive step in the right direction. Ultimately, though, it is indeed a great move to appeal to current PC gamers. Think of it like an xbox console that can also run other PC games natively.

Next-Gen Xbox console: 2027 and Beyond

Archyde: Beyond the handheld, rumors point to a next-generation Xbox console potentially launching in 2027.What kind of innovation are you expecting to see, and how might Microsoft differentiate itself from PlayStation?

Anya Sharma: The console market is fiercely competitive. microsoft’s best bet is to lean into its PC gaming strengths. Harmonizing advancement across Windows and Xbox could significantly benefit developers, streamline the optimization process for new AAA games and potentially offer a performance advantage.I would expect to see a console more akin to a high-end gaming PC than previous generations. An increased focus on ray tracing would be a good start, and the latest storage and memory advances are essential. I think a modular approach with upgradable core components is unlikely at launch but possible in the future.

The Future of Xbox: A Multi-Device Ecosystem

Archyde: Actvision-blizzard is now under Microsoft’s Umbrella. how does this impact the direction of the future for Xbox?

Anya Sharma: The Activison-Blizzard acquisition is a game-changer (pun intended). It instantly provides Microsoft with a massive library of world class IP and adds huge value to Game Pass.Beyond pure game ownership, though, it significantly strengthens Microsoft’s position in cloud gaming. Actvision’s extensive live service games, combined with battle.net integration gives Microsoft new inroads into PC gaming and mobile. We can expect to see many more Actvision franchises on portable and dedicated console in the coming years to come.

xbox: Questions and Expectations

Archyde: what’s the single biggest question you have for Microsoft regarding their future Xbox hardware plans, and what do you think this means for the future of gaming? Readers, feel free to share your thoughts in the comments!

Anya Sharma: My biggest question is this: How will Microsoft effectively communicate the value proposition of both “Keenan” and the next-gen console to consumers who may already own a capable gaming PC? Convincing them to invest in another device within the Xbox ecosystem will require a clear and compelling message, highlighting unique features, exclusive content, and seamless integration. The future of gaming will depend on platforms that are accessible and easy to use. if done right,this could be the start of an amazing era.