Xbox reportedly launching a PC gaming handheld later this year, full next-gen consoles coming 2027

The PC gaming handheld space has seen rapid growth over the last couple of years since Steam Deck’s debut, and it looks like Microsoft is finally getting ready to enter the race with its own model. According to a new report, Microsoft is said to be working with an OEM partner to launch an Xbox-branded handheld later in 2025. The report further mentions Microsoft’s plans to launch full next-gen Xbox consoles in 2027. Hit the jump for more details.

Xbox PC gaming handheld reportedly coming later this year

If this new piece of information is something to go by, Microsoft is working on a new device code named “Keenan”, which “will look unmistakably Xbox.” The device in question will even feature an Xbox Guide button that you’ll typically find on the Xbox controllers. We don’t know much else about this upcoming Xbox gaming handheld, but it’s being speculated that it’ll run Windows, complete with access to the Microsoft Store and PC Game Pass. It’s expected that the arrival of this device will help improve the overall experience of using Windows on handhelds, though there’s no way to confirm how much of an improvement it’ll bring over the current crop of PC gaming handhelds out there that already run Windows.

If you’re not particularly interested in an Xbox-branded PC gaming handheld, then you may have to wait until 2027 which is when the brand is reportedly planning to debut its full next-gen consoles. It looks like Microsoft’s successor to the  Xbox Series X|S platform has been “fully greenlit” with a slated release date in 2027. The report says Microsoft’s next-gen hardware plans include “a premium successor to the powerful Xbox Series X, alongside its own Xbox gaming handheld, and several new controller options.”

It’ll be interesting to see how things unfold at Microsoft and whether any of these machines actually hit the market as per the report. Microsoft’s reported entry into the PC gaming handheld space is particularly interesting and exciting, as it may improve other PC gaming handhelds on the market that run Windows like the ASUS ROG Ally, Legion Go, and more. That being said, it’s worth pointing out that none of this is official information and you must take it with a pinch of salt. We’ll keep our eyes peeled for more information and update with additional details.