Microsoft may be working on a new Xbox handheld console, according to a report from Windows Central. The report, written by Jez Corden, claims that Microsoft is teaming up with a PC gaming OEM to create the device. If things go as planned, it could release later in 2025.
Xbox handheld: What we know so far
Last year, a leak suggested that Microsoft’s gaming division was focusing on a handheld gaming experience. In November, Phil Spencer, the head of Xbox, confirmed that his team was working on something portable. He also hinted that it would compete with devices like Steam Deck, ASUS ROG Ally, and Lenovo Legion Go.
The Windows Central report reveals that the project is codenamed “Keenan”. It is said to have a design that feels “very Xbox,” including an Xbox Guide button. However, it is not a standalone Xbox device but a partner product. This means it will likely run full Windows, just like Lenovo’s handheld that uses SteamOS in partnership with Valve. The focus will be on making Microsoft Store and PC Game Pass easy to access, but players will also be able to install other platforms like Steam.
A better Windows experience for handheld gaming?
One of the biggest problems with Windows-based handhelds like the ROG Ally and Legion Go is the software. These devices often come with bloatware and don’t feel smooth to use with a controller. The report says that Microsoft is testing a new Windows 11 feature that will make the system more “device aware.”
The idea is to make Windows more user-friendly for a Xbox handheld device. Xbox Game Bar widgets could be used to control settings like TDP (power limits) and fan speed, without needing complicated third-party apps. These improvements might also benefit other PC gaming brands, but Microsoft is likely thinking about its own long-term plans too.
Xbox Series X|S successors coming in 2027?
Besides the Xbox handheld, Windows Central also shared new details about Microsoft’s future console plans. The report says that a next-gen Xbox Series X successor is already in development. According to Corden, the project is “fully greenlit all the way up to CEO Satya Nadella.” The company is reportedly working on:
- A premium next-gen Xbox console (successor to the Series X)
- An Xbox handheld
- New controller designs
If the timeline is correct, these next-gen Xbox devices could launch in 2027.
What’s next for Xbox?
Last year, Microsoft confirmed that it was developing new gaming hardware. However, the company’s strategy has changed a lot. Xbox has moved away from console exclusives, bringing its own games to PlayStation and Nintendo Switch. Some fans worry that Xbox consoles could become less important in the future.
Still, the new handheld project and next-gen console plans suggest that Microsoft is serious about staying in the hardware market. Whether these devices will be successful depends on how well Microsoft balances innovation, pricing, and software experience.
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