Microsoft may debut Xbox-branded handheld later this year

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Microsoft reportedly plans to enter the gaming handheld space with an Xbox-branded device, marking the tech giant’s first major step in this particular territory. 

The device with the internal codename “Keenan” is surprisingly set to launch as early as late 2025, reportedly the first part of Microsoft’s new Xbox hardware plan, which will be followed by next-generation Xbox consoles, slated for 2027. 

An Xbox-branded gaming handheld 

The latest Windows Central report suggests Microsoft is partnering with PC gaming OEMs like ASUS, Lenovo, MSI, or maybe even Razer to develop its first-ever gaming handheld.

Now, before Xbox fans get their hopes high, this won’t likely be a full-fledged Xbox device but rather an OEM device developed in partnership with Xbox.

Now, Windows Central’s report and provided timeline quite literally line up with what Microsoft’s VP of Next Generation, Jason Ronald, recently said in a discussion with The Verge, leaving no doubt that the same device is discussed here. 

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.

Furthermore, the report also suggests the Xbox handheld will be powered by a full version of Windows—Windows 11, which makes it more PC-oriented, allowing users to access Microsoft Store, PC Game Pass, and even third-party platforms like Steam.

The device is also said to introduce a new age of Windows 11 optimization for handheld devices, including better power management controls, a more intuitive interface for controller-based navigation, and more. 

There will be some Xbox-specific flavors. While the report is pretty empty on that matter, it does say  the device will feature a distinct Xbox design language, complete with the iconic Xbox guide button and the brand’s “design sensibilities.”

With all that said, if Microsoft is really tweaking Windows for handheld gaming with a more Xbox-like interface, it could have a significant impact, which may even go beyond this one device.

Wait what! New Xbox consoles

The report indicates the gaming handheld is part of a larger plan that ends with Micerosoft’s next-generation Xbox consoles.

Microsoft is knee-deep in development and plans to roll out those new devices around 2027, including a premium successor to the Xbox Series X with multiple new controller support.

Microsoft also plans to integrate its direct-to-cloud gaming features. 

Furthermore, Microsoft may integrate future Xbox consoles more closely with Windows, potentially opening the door for earlier development and broader compatibility with PC game stores like GOG, Epic Game Store, and even Steam. 

Anyhow, this is way too much information to handle. The gist of the matter is that Microsoft has an elaborate plan for its Xbox range of hardware, which may even evolve during the development process.

However, Xbox fans may not have to wait long to get the first glimpse, which starts with Microsoft’s iteration of the gaming handheld.

What do you think about an Xbox Gaming handheld? Will you buy it over a Steam Deck or other options currently out there? Tell us below in the comments, or reach us via our Twitter or Facebook.