It's been known for quite a while that Xbox is working on its own gaming handheld, it even admitted as much at CES 2025 in January. But now we've found out much more about it, and its release could be sooner than expected.

Microsoft is prepping a new handheld version of its Xbox console that could be launched later this year. Meanwhile, plans are afoot to replace the existing Xbox Series S and X consoles in 2027.

Fans have discovered that Xbox Play Anywhere supports well over 1100 games right now, but Microsoft needs to do way more to make us aware of these. This is a feature that should be front and centre of the branded handheld that's rumoured for 2025 - think of all the PC games that you might already own without knowing about them!

A new report from Windows Central claims that “Xbox’s new hardware plans begin with a gaming handheld set for later this year, with full next-gen consoles targeting 2027” and that Microsoft is working on a “Project Keenan” handheld in partnership with an unnamed OEM.

Microsoft is said to be working on an Xbox handheld console slated for release in 2025, and a full next-gen console could be coming in 2027.

According to Windows Central, Microsoft is working on a portable Xbox console that could be released by the end of the year to rival the Nintendo Switch 2 as well as other handhelds like the Steam Deck.

The rumor of an Xbox handheld has been floating around for months, but up until now, not much was really known about Microsoft’s launch plans for the hardware. A new report suggests that Microsoft is looking to launch such a handheld in the latter half of 2025.

A next-generation, full-size Xbox will take another two years, according to anonymous sources, but Microsoft's take on the handheld gaming PC could debut in the coming months.