Microsoft reportedly has plans set in motion to release its next Xbox in 2027. Along with the new console, there might be another handheld with this one being a proper Xbox handheld. What might happen is that the handheld is a lower-powered console, like the Xbox Series S, and the new home console will be more like the Xbox Series X.

An Xbox flavoured device could save the handheld PC scene.

According to Windows Central ’s Jez Corden, Microsoft is working with an unspecified PC gaming manufacturer on an “Xbox-branded gaming handheld.” Corden’s sources claim that this unannounced device, code-named “Keenan,” could arrive sometime in the back half of 2025.

A handheld device with the Xbox name might be releasing this year, but it just doesn't sound like something with the power to shake up the market.

Earlier this week, it was reported that Microsoft was planning the release of an Xbox handheld that’s set to launch sometime in 2025, and it looks like that handheld is going to be manufactured by ASUS.