Microsoft is expected to reveal its first handheld Xbox gaming console in 2025, codenamed “Keenan.” This device aims to compete with the Valve Steam Deck and potentially the Nintendo Switch 2.
Details on the handheld console
According to a report from Windows Central, Microsoft is partnering with a gaming PC manufacturer to develop Keenan, which will feature recognizable Xbox design elements, including an official Xbox guide button.
The handheld device will likely run a full version of Windows, with the Microsoft Store and PC Game Pass as its primary focus. Users will also have the ability to install Steam, the Epic Games Launcher, and other PC gaming applications.
Windows Central notes that the device is expected to utilize widgets from the Xbox Game Bar allowing users to control the thermal design power (TDP) and fan speed. However, it remains unclear how extensively Microsoft will customize its operating system for handheld gaming.
Future hardware plans
In addition to the handheld, Microsoft has a successor to the Xbox Series X/S officially greenlit by CEO Satya Nadella, slated for release in 2027. This next-gen console will be designed closer to Windows, reducing the workload on developers porting from PC. Backwards compatibility with legacy Xbox games is also a priority.
Microsoft had previously seen a decline in hardware sell-through, while its monthly active user base increased significantly after acquiring Activision-Blizzard. The integration of mobile games, including Diablo Immortal and Candy Crush Saga, with core titles like Call of Duty, World of Warcraft, and Overwatch has contributed to Microsoft’s strong positioning in the gaming market.
Microsoft has been placing its exclusive titles, such as Forza Horizon 5, on platforms like PlayStation to enhance profitability rather than focusing solely on expanding its own console user base. This strategy has raised concerns regarding long-term impacts on Xbox console hardware, but Microsoft expresses commitment to delivering new hardware for its existing audience.
The handheld console has been described as a research opportunity for Microsoft, allowing it to test Windows 11’s “device aware” capabilities while minimizing third-party software clutter. The company aims to provide a streamlined user experience tailored for controller navigation.
Plans for the next generation of Xbox hardware include a premium successor to the Xbox Series X and various new controller options. These devices are anticipated for 2027 and are expected to remain backwards compatible with previous Xbox titles.
Xbox leadership has indicated a move towards supporting third-party storefronts such as the Epic Game Store, GOG, itch.io, and Steam on their hardware. Future controllers may also feature direct-to-cloud connectivity, facilitating transitions between devices.
Challenges remain in executing these plans, and the timeline may evolve as development progresses. Official announcements from Microsoft are awaited for final confirmations of specifications, device features, and support.
Featured image credit: Kamil Switalski/Unsplash
