Hadlee Simons / Android Authority
TL;DR
- Microsoft is reportedly working on an Xbox-branded gaming handheld in partnership with a PC hardware manufacturer.
- The device is expected to run full Windows, giving players access to PC Game Pass, the Microsoft Store, and third-party platforms like Steam.
- Microsoft is also said to be developing next-generation Xbox consoles for 2027 with deeper Windows integration and new controller options.
Microsoft is reportedly gearing up to enter the gaming handheld market with an Xbox-branded device, codenamed “Keenan,” set to launch as early as late 2025. This could be the tech giant’s first major step into the PC gaming handheld space, with plans for next-generation Xbox consoles also reportedly in the works.
A new Windows Central report suggests that Microsoft is collaborating with a PC gaming OEM — likely a major player like ASUS, Lenovo, MSI, or Razer — to develop the handheld. Before Xbox fans get their hopes high, it’s worth mentioning that this device is more likely to be an OEM device developed in partnership with Xbox rather than a full-fledged Xbox device.
Microsoft’s Jason Ronald, VP of “Next Generation,” recently hinted at these plans during a discussion with The Verge. He emphasized that Microsoft’s focus is on improving the Windows handheld gaming experience by integrating Xbox innovations. “As we partner across the industry, it’s really about how do we bring those innovations that we’ve incubated and developed in the console space and bring them to PC and bring them to the handheld gaming space,” Ronald said. He also confirmed that these changes will begin rolling out this year.
Ronald’s timeline aligns with the Windows Central report, suggesting that the same device is being discussed. The reported handheld will likely introduce new Windows 11 optimizations for handheld devices, including improved power management controls and a streamlined interface for controller-based navigation.
That doesn’t mean we’re not going to see any Xbox flavor in this device, though. While confirmed details remain scarce, the publication reports that this Xbox-branded handheld will feature a distinctly Xbox design, complete with the iconic Xbox guide button and the brand’s “design sensibilities.”
As expected, the Xbox-branded handheld is said to run on a full version of Windows, making it more PC-oriented. This would allow users to access the Microsoft Store, PC Game Pass, and even third-party platforms like Steam, offering a versatile gaming experience.
If Microsoft is indeed refining Windows for handheld gaming with an Xbox-like interface, this could have a significant impact beyond just one device. The prospect of a portable Windows device that offers a smooth, console-style interface without the usual Windows-related friction could make gaming handhelds far more appealing to a wider audience.
Beyond the handheld, the report also indicates that Microsoft’s next-generation Xbox consoles are fully in development, with a planned launch around 2027. The company is said to be working on a high-end successor to the Xbox Series X and multiple new controller options that could incorporate direct-to-cloud gaming features. Future Xbox consoles may also be even more closely integrated with Windows, potentially allowing for easier development and broader compatibility with PC storefronts like Epic Games Store, GOG, and even Steam.
That’s a lot of new information to process, and as with any report of this nature, we’ll have to wait and see how much of it ultimately comes to fruition. Plans can shift, timelines can change, and details may evolve as development progresses. However, if the report holds true, Xbox fans might not have to wait too long to get their first look at Microsoft’s take on a gaming handheld.
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