The gaming landscape is set for a major shake-up as Microsoft gears up for its next big leap in hardware innovation. With the Xbox Series X|S era gradually reaching its twilight years, Microsoft has officially begun full-scale production of its New Xbox Console, targeting a 2027 release.
Alongside this, the tech giant is boldly entering the handheld gaming market with a new Xbox-branded gaming handheld device set to launch later this year.
A Handheld Gaming Revolution
For the first time, Microsoft is entering the handheld gaming market with a device codenamed Keenan. Developed in collaboration with a prominent PC gaming OEM (potentially ASUS, Lenovo, MSI, or Razer), this new handheld is expected to be Windows-based. Unlike a dedicated console, it will function more like a portable gaming PC, featuring full access to the Microsoft Store, PC Game Pass, and third-party platforms like Steam.
Keenan will likely serve as a testing ground for Microsoft’s broader hardware ambitions, refining Windows 11’s device-aware capabilities and optimizing Xbox Game Bar functionality for handheld use. The device is expected to launch later in 2025, marking Microsoft’s first serious foray into portable gaming beyond cloud-based solutions.
The New Xbox Console: What We Know So Far
While the new Xbox console is arriving soon, Microsoft’s main console successor remains in active development, with a targeted launch window of 2027. Internally greenlit to CEO Satya Nadella, the next Xbox will feature significant advancements in power, design, and ecosystem integration.
Key Features and Expectations:
- Premium Power: The successor to the Xbox Series X is expected to be a high-performance gaming machine, possibly designed to compete with the best gaming PCs rather than just matching PlayStation’s next offering.
- Windows Integration: Microsoft is reportedly planning to make the next Xbox more Windows-like than ever before, reducing the workload for developers when porting games from PC to console.
- Backward Compatibility: Xbox has long championed backward compatibility, and the new console will continue to support legacy Xbox games.
- Expanded Storefronts: Phil Spencer, Xbox’s lead, has previously hinted at supporting third-party storefronts like Steam, Epic Games Store, and GOG on future Xbox hardware.
- AI Integration: While details remain scarce, AI-powered optimizations for gaming and system performance are expected to play a role in the New Xbox ecosystem.
- Cloud Enabled Gaming: Microsoft’s investment in cloud gaming continues. New controllers reportedly feature direct cloud connectivity, enabling seamless multi-device transitions.
What This Means for Gamers
With a growing focus on ecosystem expansion, Microsoft is looking to meet gamers wherever they are, whether on a console, PC, or handheld device. The upcoming hardware ensures that players invested in the Xbox ecosystem will have a clear upgrade path, with continued support for digital libraries and Game Pass integrations.
Additionally, Microsoft’s investment in Windows-based gaming solutions means that the new Xbox console might push towards a unified platform experience, making it easier than ever for developers to create cross-compatible games.
Final Thoughts
Microsoft’s next-gen hardware ambitions reaffirm that Xbox is far from fading away. Instead, the brand is evolving, focusing on multi-device accessibility, PC compatibility, and cloud-enhanced gaming experiences. While many details remain undisclosed, the upcoming Xbox handheld and the New Xbox Console will undoubtedly shape the future of gaming.
Stay tuned for more updates on Digital Game Feed as Microsoft unveils its official plans in the coming months
When will the New Xbox Console launch?
Microsoft targets a 2027 release.
Is Xbox making a handheld gaming device?
Yes, a Windows-based handheld is coming in 2025.
Will the new Xbox support older games?
Yes, it will have backwards compatibility.
What makes the next Xbox different?
More power, Windows integration, and AI features.
Will the Xbox handheld support PC games?
Yes, it will support Steam, Microsoft Store, and more.
Is cloud gaming a focus for Xbox?
Yes, with new cloud-enabled controllers.
Will Xbox support third-party storefronts?
Microsoft is considering Steam and Epic Games Store.