Xbox Handheld Reportedly Launch this Year to Compete with Steam Deck, and New Console Slated for 2027

Here’s what to expect from the new device and the next-gen Xbox console.

Still thinking about buying a Steam Deck or Asus ROG Ally from some time? It’s better to wait a little longer. According to Windows Central, Microsoft is probably releasing an Xbox-branded device for PC gaming this year. The company is also looking forward to its next-gen Xbox console which is slated for 2027 release.

Codename “Keenan,” the new handheld is expected to launch in 2025 and will be a Windows device. Unlike Steam Deck which runs on SteamOS, Microsoft’s handheld will run full Windows and will have access to Microsoft Store, PC Game Pass, and even 3rd party platforms like Steam. It’s a “partner device” which means Microsoft is working with an OEM to build it. But it will still be an Xbox-branded model and designed to give a feel of an Xbox product. If true, it will be a nice alternative to previous handhelds.

Along with the handheld, Microsoft is also looking forward to the next era of home consoles. Windows Central reports that the next Xbox console has been fully greenlit at the highest levels of Microsoft including CEO Satya Nadella. The new console is expected to be released in 2027 with a few new controller features. With the current Xbox generation winding down over the next few years, this suggests Microsoft might have plans for a new hardware strategy.

This aligns with Microsoft’s gaming strategy of making Xbox a service that meets players wherever they are whether it’s on consoles, PCs, mobile devices, or the cloud. Recent moves like bringing old Xbox games like Forza Horizon 5 to PlayStation further reinforce this move. Microsoft’s acquisition of Activision-Blizzard also gives them a deeper foothold in PC and mobile gaming.

If the Xbox handheld is indeed arriving this year, we should hear more about it soon – possibly during Summer Game Fest. For now, gamers looking for a new handheld might want to hold off before making a purchase.