Microsoft's next-gen Xbox in 2027 joined by Xbox handheld in 2025 codenamed 'Keenan'

Microsoft is preparing its next-gen Xbox console for 2027 but before then, we're reportedly going to see an Xbox gaming handheld that will run Windows, and compete with the growing number of handhelds on the market.

In a new report from Windows Central executive editor Jez Corden, we're hearing more news that Microsoft is working with a PC gaming OEM (ASUS, Lenovo, MSI, Razer, etc) on an Xbox-branded gaming handheld that we're going to be surprised with... later this year, as in 2025.

Microsoft's purported Xbox gaming handheld is codenamed "Keenan" with Corden saying it will look unmistakably "Xbox" with an official Xbox guide button, and Xbox design sensibilities, with Corden saying he expects the new Xbox handheld to "be more PC-oriented". He continues, saying that given that this is a partner device, he expects the PC-oriented Xbox handheld will most likely run Windows, "putting the Microsoft Store and PC Game Pass front and center, alongside the ability to install things like Steam".

Corden continues: "This device will likely serve, at least in part, as a research experience for Microsoft. I expect the handheld will test new Windows 11"device aware"capabilities, while reducing third-party OEM bloatware that are typical of devices like the Lenovo Legion Go and ASUS ROG Ally. I expect Microsoft will leverage widgets on the Xbox Game Bar on PC for controlling things like TDP and fan speed, while hopefully having a more streamlined OS experience for controller use. Of course, existing PC gaming OEMs will benefit from these efforts as well - but the research will also help with Microsoft's further-out plans".