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.

A new report claims that Xbox fans should expect an Xbox-branded gaming handheld in 2025 and the next generation of console hardware in 2027.

If this second handheld system happens, we'd expect it to be more like a 'traditional' Xbox console that supports console games. If the above 2025 system launches and Microsoft continues to work on compatibility for a few years, the team could potentially get existing Xbox console games running on this new device.

An Xbox flavoured device could save the handheld PC scene.

Microsoft is reportedly developing an Xbox-branded gaming handheld, codenamed "Keenan," in partnership with a PC gaming OEM.

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.