Microsoft is reportedly working on an Xbox-branded PC gaming handheld, aiming to enter the growing market of portable gaming devices.
According to a report by Windows Central, the device, internally codenamed "Keenan," is expected to launch in 2025 if development proceeds as planned.
Microsoft’s Entry into the Handheld Market
Microsoft is said to be collaborating with an original equipment manufacturer (OEM) to produce this handheld gaming device.
Unlike Valve’s Steam Deck, which runs on SteamOS, the upcoming Xbox handheld is expected to operate on a full Windows environment. This would allow users to access Microsoft Store, PC Game Pass, and other gaming platforms like Steam, Epic Games Store, offering a broad range of gaming options.
Next-Gen Xbox Console Plans
In addition to the handheld, reports indicate that Microsoft has greenlit the development of a successor to the Xbox Series X|S. Sources suggest that the next-gen Xbox console is expected to launch in 2027, alongside several new controller options.
The next Xbox consoles will apparently be more Windows-like than ever, making it easier for developers to port games between PC and console. They'll maintain backward compatibility with older Xbox games, with Xbox president Sarah Bond already announcing a team focused on ensuring compatibility across generations.
Xbox head Phil Spencer has previously mentioned interest in supporting third-party storefronts on Xbox hardware, potentially including platforms like Epic Game Store and even Steam as well.
What’s Next?
If Microsoft’s handheld gaming device is indeed in development, more details could emerge later this year, possibly during gaming events such as Summer Game Fest. While there are still uncertainties regarding specifications, pricing, and features, it is clear that Microsoft is committed to expanding its gaming hardware lineup.