Microsoft is reportedly working with prominent industry manufacturers to prepare a new handheld console. Later in 2025, this new device would be released, running natively on Windows with enhancements aimed at improving gameplay. Additionally, third-party apps like Steam and the Epic Games Store could be installed.
However, the business would have also approved a new generation of consoles to replace the Xbox Series X|S. Along with new and different controllers, there would be a first-party handheld console in addition to a high-end desktop system. The planned release window for these projects is 2027.
Microsoft Is Targeting the Handheld Device Market
Microsoft is presently collaborating with a PC gaming OEM to introduce a new handheld device bearing the Xbox brand later this year, according to Windows Central. Despite being largely created by a third-party manufacturer, this device would have a “unmistakably Xbox” design, along with the recognizable Xbox Guide button and other Xbox-branded elements. Known internally as “Keenan,” this would be the company’s first formal entry into the portable industry.
It is anticipated that this gaming handheld will become a viable substitute for other devices that are already available on the market, such the renowned Steam Deck from Valve, the ASUS ROG Ally, and the Lenovo Legion Go. The development of functionality and software enhancements for this new device, which would run native Windows 11 but be modified for portable operations, would be one of its advantages. It might highlight cloud gaming choices, Game Pass, the Microsoft Store, or even advancements made possible by artificial intelligence.
We’ve heard about the potential for an Xbox handheld device before. There has been much discussion on the company’s interest in creating such hardware for a number of months. The fact that Xbox Head Phil Spencer said during a live event in the middle of 2024 that he believed “(Xbox) should have a handheld, too” was one of the clearest clues. Additionally, he stated that the business is currently getting ready to reveal upcoming product innovations.
According to Windows Central, the business already has several devices approved by CEO Satya Nadella that will be the next generation of the current gaming handheld and come in 2027. This is in addition to the third-party gaming handheld. There will primarily be two devices: a proprietary Xbox handheld console and a high-end desktop console that replaces the Xbox X|S series. The goal of these initiatives might be to bolster the brand following a recent drop in sales.