Xbox handheld out this year and will go up against Nintendo Switch 2 says source

New rumours about Microsoft’s next gen plans suggests that there will be two Xbox handheld consoles and the first is aiming for a 2025 launch.

For many, the idea of a next gen Xbox being released in the next year or two seems far too soon. And yet that’s exactly what’s been rumoured for some time now, including from a source this week who claimed that the new console would basically be a PC in ‘a TV friendly shell’.

Microsoft themselves have confirmed that they’re working on a next gen console, so that’s not under debate, but they’ve also said that they’re making some kind of handheld Xbox device that is a ‘few years out’.

The earlier rumour didn’t touch on that but now the same source has claimed that rather than being far off, the new portable device is due out this year and will not be made by Microsoft themselves.

According to a Windows Central report by editor Jez Corden, the unexpectedly early release is because the handheld will not be made by Microsoft but by a third party. He doesn’t know who, but name drops Asus, Lenovo, MSI, Razer as potential partners.

He describes the device as being Xbox branded and currently codenamed Keenan. It will apparently be ‘unmistakably Xbox’, with a guide button similar to the current controller and ‘Xbox design sensibilities.’

Corden also suggests that the handheld will ‘likely’ run full Windows, with immediate access to the Microsoft Store and PC Game Pass, as well as the option to install Steam.

In other words – just like Corden’s rumours about the home console – it’s basically a PC in a (handheld) box and seemingly very similar to Steam Deck and its competitors.

Although Corden has proven to have solid contacts at Microsoft in the past it’s not entirely clear how much of his report is insider knowledge and how much is speculation. However, he says that Keenan will ‘likely’ be a ‘research experience’ for Microsoft, in part to test Windows 11 device aware capabilities, to reduce third party bloatware.

Given how often Xbox boss Phil Spencer has talked about his love for handheld PC gaming devices none of this is hard to believe, with only the 2025 release date being a real surprise.

However, recent data revealed that the market for such portables is far smaller than many assume, with the Steam Deck only having sold around 4 million units and its competitors far less than that.

As such, it’s hard to imagine the new Xbox handheld making much of an impact, especially if it’s sold at a similar price and comes out within months of the hotly anticipated (and likely to be considerably cheaper) Nintendo Switch 2.

Corden adds that the next gen home console Xbox will be a ‘premium successor’ to the Xbox Series X and will be released alongside ‘its own Xbox gaming handheld’ and several new controllers.

These new consoles will supposedly be released in 2027, so ironically 2026 may be the only year that doesn’t end up seeing a new console launch.

Even assuming the rumours are correct though, plans do change, especially at Microsoft, and the report notes that the third party Xbox device will only be released this year, ‘if plans are met’.

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