Microsoft’s teased a new Xbox-branded gaming handheld, codenamed Keenan (or “Kennan” in some reports), for a late 2025 release, alongside a next-gen Xbox console in 2027. But is Keenan actually happening, or is it just another round of gaming rumors? Let’s dig into the reports, the skepticism, Xbox’s current struggles, and what it all means for gamers.
The Case for Keenan: Microsoft’s Reported Plans
The Rumor
Microsoft is supposedly partnering with a major PC gaming OEM—likely ASUS, Lenovo, MSI, or Razer—to launch an Xbox-branded handheld codenamed Keenan by late 2025. This device would bridge Xbox and PC gaming, running a full version of Windows 11 with a focus on the Microsoft Store and PC Game Pass, while supporting third-party storefronts like Steam, Epic Games Store, and GOG. It’s described as a partner device, not a first-party Xbox handheld, similar to Lenovo’s SteamOS partnership with Valve.
Design and Features
Keenan would sport an “unmistakably Xbox” aesthetic, featuring an official Xbox guide button and design cues matching the brand. It’s expected to test new Windows 11 “device-aware” capabilities, aiming to ditch third-party OEM bloatware (common in devices like the ASUS ROG Ally or Lenovo Legion Go) and streamline gaming. Microsoft might use Xbox Game Bar widgets to control TDP and fan speed, optimizing performance for handheld play. While AMD’s Strix Point APU is a likely candidate, no custom silicon has been confirmed.
Purpose and Strategy
This handheld is framed as a research project for Microsoft, testing its Xbox platform on handhelds and paving the way for broader ecosystem integration. It’s part of the “Xbox Everywhere” strategy, unifying Windows and Xbox for a universal game library across devices, as VP of ‘Next Generation’ Jason Ronald mentioned in January 2025. Keenan aims to compete with SteamOS, especially after Valve opened it to third-party devices like the Lenovo Legion Go S, set for May 2025.
The Skepticism: Is Keenan Just Hype?
Doubts from the Start
Not so fast—some reports, like one from early 2025, cast doubt on Keenan’s existence. A January article from The Verge suggested Microsoft isn’t actively developing an Xbox handheld for 2025, calling rumors of Keenan premature or speculative. It noted that while Microsoft has explored handheld concepts, no firm plans or partnerships (like with ASUS) were confirmed at the time. Xbox CEO Phil Spencer’s comments about handhelds being “years away” fuel this skepticism, implying Keenan might be a misunderstanding or overblown rumor.
No Solid Evidence
The Verge pointed out a lack of concrete evidence for Keenan—no official announcements, no prototypes shown, and no OEM confirmations from ASUS or others. It suggested early reports might have conflated Microsoft’s interest in PC handhelds with a specific Xbox-branded device, leaving Keenan’s reality in question. This contrasts with later claims of an ASUS partnership and a late 2025 timeline, raising doubts about whether Microsoft’s plans are solid or just wishful thinking.
Timing and Context
The skepticism makes sense given Xbox’s current hardware struggles. With sales lagging and market share shrinking, Microsoft might be cautious about announcing new hardware prematurely. The Verge’s report aligns with Spencer’s cautious stance on handhelds, suggesting any 2025 release could be a stretch or a misinterpretation of broader PC gaming initiatives, not a dedicated Xbox device.
Next-Gen Xbox Console (2027 Development): A Firmer Bet
What’s in the Works
Microsoft has greenlit a next-gen Xbox console for a 2027 release, alongside a first-party Xbox handheld and new controllers. This premium successor to the Xbox Series X won’t have a direct Series S follow-up, suggesting the handheld might fill that lower-power role. It’s designed to be more PC-like, potentially supporting third-party storefronts like Steam, Epic Games Store, and GOG, reducing developer porting efforts.
Design and Features
The 2027 Xbox will feature backwards compatibility with legacy Xbox games, continuing Microsoft’s library commitment, as Xbox president Sarah Bond emphasized in 2024. It may use AMD’s upcoming UDNA architecture (after RDNA 4), promising the “largest technical leap” in Xbox history, per Bond’s 2024 statement. New controllers with direct-to-cloud connectivity are also planned, enhancing cloud gaming.
Strategic Shift
Microsoft’s PC-like console shift reflects its multi-device strategy, meeting players “where they are.” This follows the Activision-Blizzard acquisition, reinforcing Microsoft’s gaming dominance, and a multiplatform approach, including PlayStation 5 releases like Forza Horizon 5 and Indiana Jones and the Great Circle. The 2027 timeline aligns with industry estimates, making November 2027 plausible.
The State of Xbox Today: A Console in Crisis
Sales Slump
Xbox is in a tough spot. The Xbox Series X/S, launched in 2020, has sold around 30 million units. That’s less than half of PlayStation 5’s 65 million units and a fraction of Nintendo Switch’s 150 million. Microsoft itself admitted losing the console war of this generation, with Sony and Nintendo leaving Xbox in the dust. Xbox’s market share for console operating systems is strong at 61.12% in some regions, but hardware sales tell a different story—Xbox is trailing badly.
Market Share and Strategy Shifts
Xbox holds a 74.79% share of the console OS market in North America, but that doesn’t translate to hardware dominance. PlayStation 5 outsells Xbox three-to-one globally, and Nintendo’s Switch has crushed both. Microsoft’s pivot to multiplatform releases and services like Xbox Game Pass reflects this reality, but it’s raised doubts about Xbox’s hardware future. The focus on PC-like devices and handhelds like Keenan suggests Microsoft’s rethinking its console strategy, but sales numbers show the damage is already done.
Fan and Industry Reaction
Fans are divided—some cheer Microsoft’s bold moves, while others question why Xbox hardware isn’t keeping pace. Industry analysts note Xbox’s lag as a wake-up call, with Microsoft’s multiplatform approach fueling speculation about abandoning consoles. But these 2025 and 2027 announcements signal Microsoft’s not ready to throw in the towel—just yet.
What’s the Verdict on Keenan?
With conflicting reports, Keenan’s reality is murky. Some sources claim a late 2025 release with an ASUS partnership, while others, like The Verge’s January 2025 report, suggest it’s premature or speculative. Microsoft’s focus on PC handhelds and Spencer’s “years away” comment for a first-party handheld leave room for doubt. Fans speculate about whether Keenan’s a game-changer or just hype, but I’m sticking to the facts—watch for official updates to confirm if Keenan’s real or another Xbox rumor.
News compiled by Derek Gibbs and Edgar B. D/REZZED Gaming News is part of Clownfish TV. Subscribe to our newsletter below —
D/REZZED provides Balanced and Based Gaming, Pop Culture, and Paranormal News. Opinions expressed do not necessarily reflect those of hosts, editors, other contributors, affiliates, sponsors, or advertisers. Our articles are human-edited but may utilize AI assistance for research and grammar. Articles may include affiliate links; we may earn commissions on purchases made through these links. Any products or services received for review are disclosed, as are any sponsored posts.
Sources & Hat Tips
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Handheld details: Windows Central, “Xbox’s New Hardware Plans Begin with a Gaming Handheld Set for Later This Year,” 2025; TweakTown, “Microsoft’s Next-Gen Xbox in 2027 Joined by Handheld 2025 Codenamed Keenan,” 2025; The Verge, “Microsoft Xbox Handheld with ASUS Partnership (Project Kennan),” 2025.
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Next-gen console details: Windows Central, “Xbox’s New Hardware Plans with Full Next-Gen Consoles Targeting 2027,” 2025; IGN, “Full Next-Gen Xbox Reportedly Set for 2027 with Xbox-Branded Gaming Handheld Due Out Later in 2025,” 2025; Eurogamer, “Xbox Next-Gen Console Reportedly Targeting 2027 with Handheld Device Due This Year,” 2025.
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Xbox current state: GameRant, “Estimated Xbox Series X and S Console Sales Numbers Revealed,” 2025; DemandSage, “Xbox Statistics 2025—Players & Active Users Data,” 2025; AllKeyShop, “PlayStation vs. Nintendo vs. Xbox: Sales and Margin Comparison,” 2024.
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Market context: IGN, “Xbox Hardware Sales and Market Position,” 2025; Eurogamer, “Microsoft’s Commitment to Xbox Hardware,” 2025; The Verge, “Handheld
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