When discussing the gaming ecosystem as a whole, Microsoft has successfully positioned its Xbox brand as a giant with immense appeal. With a growing first-party stable under its banner, an increasingly attractive Game Pass service, and the affordable console variants, Xbox has solidified its place in the industry. Now, reports suggest that in 2025, Microsoft is preparing to enter a rapidly growing market — handheld gaming.
Following in the footsteps of major players like Lenovo, MSI, and Valve, Microsoft is reportedly set to launch an Xbox handheld gaming device later this year. This information comes from Windows Central, a reliable source for Microsoft-related rumors.
Internally, the handheld project is said to be codenamed “Keenan” and is being developed in collaboration with a major PC gaming OEM. Microsoft aims to retain the distinctive Xbox experience, particularly in terms of design.
Additionally, the handheld device is expected to run on Windows 11 as its operating system. This decision is not just because Windows is a Microsoft product but also as an experiment to assess how well the OS can perform on a compact handheld device. This will allow the console to tap on the Microsoft Store and PC Game Pass, while having the capacity for other platforms like Steam.
Interestingly, reports also suggest that the proposal for the next-generation Xbox console has been approved by CEO Satya Nadella, with a planned release in 2027. While there are no concrete details regarding its performance, the software is expected to become even more closely integrated with Windows, making it easier for developers to port their games. The console is also rumored to support backward compatibility, similar to the Xbox Series X|S lineup.
As of now, all this information remains speculative since Microsoft has not provided any official statements. Gamers and industry watchers alike will have to wait for further confirmation from the company.
