Microsoft is set to release its first handheld gaming console, codenamed “Keenan,” by the end of 2025, according to a report from Windows Central. The Xbox-branded device will be developed in partnership with a gaming PC manufacturer and will emphasize familiar Xbox design elements.
Microsoft to launch first handheld Xbox console codenamed ‘Keenan’
The handheld is expected to run a full version of Windows, allowing access to the Microsoft Store and PC Game Pass, while also permitting users to install Steam, the Epic Games Launcher, and other PC gaming applications. Windows Central highlights how the console might utilize widgets from the Xbox Game Bar for controlling performance aspects such as thermal design power (TDP) and fan speed, although details on the extent of bespoke OS customization for handheld gaming remain unclear.
This upcoming device will compete directly with current handheld consoles like Valve’s Steam Deck and the anticipated Nintendo Switch 2. Additionally, Windows Central reported that Microsoft has greenlit a successor to the Xbox Series X/S, with both this next-gen console and the Xbox handheld set to launch in 2027.
According to Jez Corden from Windows Central, “It seems that the next-gen Xbox consoles will be closer to Windows than ever before, reducing the amount of work developers have to commit to when porting from PC.” Furthermore, these consoles will maintain backwards compatibility with legacy Xbox games, a project initiative announced by Xbox president Sarah Bond to enhance compatibility for existing titles.
Microsoft’s hardware strategy appears focused on addressing both legacy and new audiences, aiming to grow its profitability by serving users where they are, including releasing exclusive games like Forza Horizon 5 on competing platforms like PlayStation. Although this strategy has raised questions about its long-term impact on Xbox console hardware, Microsoft remains committed to delivering new hardware options.
The gaming handheld is anticipated to provide a more Windows-oriented experience, likely incorporating lessons learned from existing handheld OEMs. This includes reducing third-party bloatware common with similar devices and enhancing user control over system functions for gaming purposes.
Plans for the next generation of Xbox hardware include a premium successor to the Xbox Series X and several new controller options. The potential for cloud connectivity capabilities and third-party storefront support on Xbox devices, including platforms like Epic Game Store and Steam, are also being explored.
Microsoft’s acquisition of Activision-Blizzard has fortified its position as a leading gaming company, with a robust lineup of upcoming Xbox games. This multi-device strategy emphasizes meeting players across various platforms and locales, indicating an ongoing evolution of the Xbox brand within the gaming landscape.
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