Xbox’s 2025–2027 Hardware Strategy: Handheld Launch Followed by Next-Gen Xbox Consoles

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Next-Gen Xbox Consoles
Xbox’s 2025–2027 Hardware Strategy: Handheld Launch Followed by Next-Gen Xbox Consoles

Microsoft’s Xbox team is gearing up to launch some exciting new gaming hardware. 

One of the biggest releases coming soon is an Xbox-branded handheld, known by its codename “Keenan.” It’s expected to hit the market later this year and will work smoothly with Microsoft’s gaming setup. 

Looking ahead, the company has its sights set on the Next-Gen Xbox consoles, aiming for a 2027 release. These new projects show just how serious Microsoft is about making gaming better across all platforms.

Let’s cover the details of these upcoming hardware developments.​​

Xbox’s Gaming Handheld (2025)

Microsoft is reportedly developing an Xbox-branded handheld gaming device, internally referred to as “Keenan.” This gadget is being developed with a big-name PC gaming brand like ASUS, Lenovo, MSI, or Razer. It’s set to drop sometime in late 2025 and will have that classic Xbox feel, complete with an official Xbox guide button.

The device will run a special version of Windows, making it easy to access the Microsoft Store and PC Game Pass. Gamers won’t be limited to just Microsoft’s ecosystem, though—it’ll also support platforms like Steam.

This handheld isn’t just about gaming; it’s part of Microsoft’s bigger plans for the future. They’re gearing up for next-gen consoles expected around 2027, and this device will help them fine-tune new Windows 11 features for gaming. 

Since nothing has been officially announced, things might change as development moves forward.

Long-Term Xbox Consoles Plans (2027)

Microsoft is planning big things for its next wave of gaming consoles, aiming for a 2027 release. There’s talk of a high-end upgrade to the Xbox Series X|S, a gaming handheld made in-house, and fresh controller designs. 

These new devices are expected to run on a Windows-based system, making it easier for developers to work with while keeping older Xbox games playable. 

The next-gen Xbox might not even be a regular console—it could be more like a gaming PC but built to fit right into a living room setup. 

Microsoft seems to be focusing on giving players more choices with their gaming gear, making sure there’s something for everyone.

Xbox’s Multi-Device Strategy

Microsoft wants to make gaming easier and more flexible for everyone. With its multi-device strategy, you can play Xbox games on different platforms, whether you’re at home, on the go, or using your favorite device. This approach is all about giving players more choices and making gaming accessible no matter where they are or how they like to play.

Expanding Game Pass and Mobile Gaming

Xbox Game Pass is a big part of Microsoft’s game plan. It’s a subscription service where players get tons of games for a monthly fee. 

By February 2024, it had 34 million subscribers—pretty huge, right? You know the best part is? It keeps getting better. Microsoft has added games from studios they recently bought, including big names from Activision Blizzard. 

Now, Game Pass includes hits like Call of Duty, Warcraft, and even Candy Crush. With so many great titles, it’s easy to see why more and more gamers are signing up.

Back in January 2022, Microsoft revealed plans to buy Activision Blizzard for a whopping $68.7 billion. The goal was to strengthen its gaming lineup and break into mobile gaming with the help of Activision’s King studio, the makers of Candy Crush Saga. 

With this deal, Microsoft is now in a better position to take on competitors, expand its game collection, and reach even more players.

Integrating Game Pass with Battle.net and Cloud Gaming

Microsoft buying Activision Blizzard means Game Pass and Battle.net work together better. Now, Game Pass subscribers can play more games and use more features, making gaming even more fun. 

Microsoft is also putting money into cloud gaming, so players can stream games on different devices without needing fancy hardware. 

Back in 2020, they launched Xbox Cloud Gaming (xCloud), which lets people play high-quality games on phones, tablets, and PCs.

Releasing Major Titles on Multiple Platforms

Microsoft is making it easier for gamers to play anywhere by launching big games like Call of Duty: Black Ops 6 on Xbox Cloud Gaming right from day one. 

This means players can jump in on different devices at the same time, making gaming more flexible and hassle-free. 

It’s part of Microsoft’s plan to focus more on game streaming and subscriptions, so players don’t have to rely on pricey consoles to enjoy their favorite titles.

Supporting Nintendo Switch 2

Microsoft is gearing up to bring Xbox games to Nintendo’s next-gen Switch 2. This move is all about reaching more players and making gaming more connected across different platforms. 

By letting Xbox titles run on another console, Microsoft is giving gamers more ways to enjoy their favorite games, no matter what system they prefer. 

At the same time, Xbox keeps its exclusive lineup strong while opening doors for new gaming experiences.

What Could be the Challenges for Xbox’s Upcoming Hardware?

Microsoft is working hard to expand its gaming hardware, but it won’t be easy. The new Xbox handheld will run full Windows, letting players access the Microsoft Store, PC Game Pass, and even Steam. 

But making Windows work well on a handheld device is a big challenge since it’s not built for gaming on the go. 

At the same time, the Xbox Series S has been criticized for not being powerful enough, making it tough for developers to create feature-packed games. 

Finding the right balance between power, battery life, and ease of use in a handheld won’t be simple for Microsoft.

Mohit
Mohit
Mohit is a freelance writer who loves writing games related blogs and news. When he's not writing, he's either reading fantasy books or playing the newest video games. He's a big fan of Mass Effect game series. Mohit really likes role-playing games, and sometimes he thinks of everyday conversations like a choose-your-own-adventure game.

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