Microsoft reportedly has plans set in motion to release its next Xbox in 2027. Along with the new console, there might be another handheld with this one being a proper Xbox handheld. What might happen is that the handheld is a lower-powered console, like the Xbox Series S, and the new home console will be more like the Xbox Series X.

A new next-gen Xbox console will reportedly come out in 2027 with plans for a handheld later this year. Here's what we know.

A new report has outlined Microsoft’s video game hardware ambition, alleging a full next-gen Xbox is set for 2027 and an Xbox-branded gaming handheld is due out later in 2025. Windows Central reported on a partner PC gaming handheld codenamed Keenan,

Microsoft Gaming CEO Phil Spencer told Polygon he couldn’t stop thinking about what an Xbox handheld could be. Months later, Spencer told Bloomberg Microsoft had indeed been thinking about it, but that it’s a piece of hardware that’s still years out from becoming a reality.

The Asus ROG Ally, along with its premium sibling, the Asus ROG Ally X, stand among the best handheld gaming consoles you can get, so Microsoft would do well to partner up with the company for a new handheld device — especially if it comes with an all-new OS platform that caters to Xbox.

I play most of my games on an Xbox plugged into a 65-inch OLED TV in the living room. Despite this comfy setup, I caved and finally bought a Steam Deck in late 2024, and I’m so happy that I’ve started padding my neglected Steam library once again.

A handheld device with the Xbox name might be releasing this year, but it just doesn't sound like something with the power to shake up the market.

Earlier this week, it was reported that Microsoft was planning the release of an Xbox handheld that’s set to launch sometime in 2025, and it looks like that handheld is going to be manufactured by ASUS.