Microsoft plans to launch an Xbox-branded gaming handheld later in 2025 through partnership with a PC gaming manufacturer, followed by next-generation Xbox consoles targeting 2027, according to WindowsCentral. The handheld device, codenamed "Keenan," will run full Windows with Microsoft Store and PC Game Pass integration, featuring distinct Xbox design elements including an official guide button.

Microsoft is expected to use the device to test new Windows 11 "device aware" capabilities while reducing typical OEM bloatware. The next-generation Xbox console plans include a premium successor to Xbox Series X alongside Microsoft's own gaming handheld and new controller options with direct-to-cloud connectivity, the report said. These consoles will reportedly operate closer to Windows architecture, reducing developer porting workloads while maintaining backwards compatibility with legacy Xbox games.

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