Xbox Handheld Slated for Release This Year, Next-Gen Consoles in 2027

Microsoft is advancing its gaming hardware portfolio with two significant projects: an Xbox handheld slated for release later this year, and next-generation Xbox consoles targeting a 2027 launch, Windows Central reports.

Codenamed “Project Kennan,” the highly-anticipated Microsoft handheld is reportedly being developed in collaboration with a prominent PC gaming original equipment manufacturer (OEM), mostly likely Asus, and is expected to feature a design that aligns with the Xbox brand, including an official Xbox guide button and familiar design elements.

Unlike traditional consoles, Kennan is anticipated to run a full version of Windows, granting users access to the Microsoft Store, PC Game Pass, and the capability to install third-party applications such as Steam. By integrating Windows into the handheld device, Microsoft aims to provide gamers with a seamless transition between different gaming platforms, enhancing the overall user experience.

By entering the handheld market, Microsoft positions itself to compete with established players like Nintendo and emerging competitors in the portable gaming sector.

In addition to the handheld device, Microsoft is reportedly planning the successors to the Xbox Series X and Series S consoles, with a projected release in 2027. These next-generation consoles have received approval from top executives, including CEO Satya Nadella, and are currently in the production phase.

The forthcoming consoles are expected to further integrate with Windows, facilitating game development for PC and maintaining backward compatibility.

By linking Xbox to Windows, Microsoft can cast off the need to build a system that is completely lock-step with PlayStation on features and power, while giving developers an easier time to optimize their Windows PC versions specifically for the next-gen Xbox console.