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 reportedly 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.

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

Xbox’s Gaming Handheld (2025): Keenan

Windows Central’s Jez Corden says that Microsoft is 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.

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. 

Xbox’s Multi-Device Strategy

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.

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. 

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. 

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. 

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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