Microsoft’s Xbox Handheld Set to Launch This Year, Says Report

Microsoft is gearing up for the future of Xbox with plans for new hardware, including a premium next-gen console and an Xbox-branded handheld device, according to a report from Windows Central.

The new Xbox handheld, codenamed “Keenan,” is being developed in partnership with a PC gaming brand and is expected to launch by late 2025. Designed with a clear Xbox aesthetic, it will feature an official Xbox guide button and likely run full Windows. This would give users access to the Microsoft Store, PC Game Pass, and platforms like Steam. A concept image was shared above of what this handheld could look like.

Earlier this year, during CES 2025, Microsoft’s VP of Next Generation, Jason Ronald, did officially talk about an Xbox handheld.

Beyond the handheld, Microsoft has reportedly greenlit plans for its next-gen Xbox console, set for a tentative 2027 release. The console is expected to be more closely integrated with Windows, simplifying game development and enhancing support for third-party storefronts like Epic Games and Steam. Backward compatibility with older Xbox games will remain a priority. Existing Series S and Series X consoles debuted back in late 2020.

Microsoft is also developing new controller options with direct-to-cloud connectivity, allowing players to easily switch between devices.

Currently, the Logitech G Cloud Gaming Handheld and the Razer Edge Android Gaming Handheld are designed to support Xbox Cloud Gaming (Beta) with Game Pass Ultimate, allowing users to stream and play a wide array of Xbox titles on portable devices. But we haven’t seen a native Xbox handheld just yet that runs full Windows.

What do you think? Are you looking forward to a portable Xbox handheld device?