Xbox is reportedly looking to release a handheld console in 2025. This move would mark Microsoft’s first entry into the portable gaming market, an industry segment that has seen remarkable growth with Nintendo Switch dominating the space for years.
According to Jez Corden from Windows Central, Microsoft is planning to compete with the Nintendo Switch and Valve’s Steam Deck with an Xbox handheld later this year, which the analyst claims will be produced outside of Microsoft by a partner OEM (Original Equipment Manufacturer) such as ASUS, Lenovo or Razer. These potential manufacturing partners have extensive experience in creating gaming hardware and could help Microsoft deliver a competitive product.
Corden suggested the supposed console would be “more PC-orientated”, and could likely run “full Windows” while supporting the Microsoft Store and PC Game Pass. This approach would give users access to a vast library of games currently available through the Xbox Game Pass subscription service, which has attracted millions of subscribers worldwide.
The leaker added the device was codenamed “Keenan”, and said it “will look unmistakably Xbox”, while claiming the console will feature an Xbox Guide button similar to those seen on the Xbox Series X|S controllers. Industry analysts suggest this design continuity is crucial for brand recognition in the competitive gaming market.
This comes just after Corden asserted the next standard Xbox – which is rumored to be called the “Xbox Prime” – would be a “PC in essence but with a TV-friendly shell”, and would launch in 2027. This timeline suggests Microsoft is developing a comprehensive hardware strategy spanning both portable and home console gaming experiences.
Speaking on ‘The Xbox Two Podcast’, he said: “The whole idea of the next Xbox is that it’s gonna be a PC in essence but with a TV friendly shell that also has a specific set of specs in mind, so developers will be building for Windows PC in a way but in such a way that they know exactly what the specs will be, so they can optimize exactly for it.” This development approach could potentially streamline game creation across Microsoft’s ecosystem, benefiting the many game development studios worldwide that create content for Xbox platforms.
The handheld gaming market has experienced a renaissance in recent years, with the Nintendo Switch becoming one of the best-selling consoles of all time and Valve’s Steam Deck carving out a significant niche among PC gaming enthusiasts. Portable gaming devices now represent a substantial portion of all gaming hardware sales globally.
Microsoft’s entry into the handheld space would follow its acquisition of Activision Blizzard, which significantly expanded its game portfolio and development capabilities. This strategic move could leverage that extensive game library to provide a competitive advantage in the portable market.
Industry experts suggest that a Windows-based handheld would differentiate itself from competitors by offering broader software compatibility, potentially running not just Xbox games but thousands of PC titles as well. This would address a key consumer demand for versatility in gaming hardware, with many gamers valuing platform flexibility.
The timing of this rumored release coincides with the maturation of mobile processor technology, with current AMD and Intel chips now capable of delivering console-quality gaming experiences while maintaining reasonable battery life. Technical analysts predict the device could feature custom silicon similar to the semi-custom AMD solutions used in the current Xbox Series consoles.
If launched as reported, the Xbox handheld would represent Microsoft’s most significant hardware innovation since the introduction of the Xbox Series X|S consoles in 2020. The company has been increasingly focused on expanding its gaming ecosystem beyond traditional consoles, embracing cloud gaming and multi-platform strategies to reach gamers worldwide.
Financial analysts suggest that a successful entry into the handheld market could boost Microsoft’s gaming revenue significantly, particularly if the device manages to capture synergies with the company’s existing Game Pass subscription service, which already generates substantial annual revenue.
The portable gaming landscape has evolved dramatically since earlier attempts like the PlayStation Portable and PlayStation Vita, with modern devices offering near-console quality experiences. Microsoft’s entry would further legitimize this growing segment of the gaming market and potentially accelerate innovation among competitors.
