Sure, it’s seen a few growth spurts here and there, but Microsoft has reported declining console sales revenue for years. However, the company has showcased a brighter outlook since it shifted to releasing its first-party titles for other consoles. After the success of last year’s line-up, consisting of titles like Hi-Fi Rush and Sea of Thieves on PS5, Forza Horizon 5 is out in April, followed by (if rumors are true) Indiana Jones and the Great Circle. Nothing is seemingly off the table, with Starfield, the rumored Gears of War Collection, Halo, Senua’s Saga: Hellblade 2, and more allegedly coming to the console.

There isn’t a lot of data to pull from, but Forza Horizon 5 is competing with heavy hitters like MLB The Show 25, WWE 2K25, and Assassin’s Creed Shadows for the most pre-ordered title spot. Not bad for a game that’s over three years old at this point.

However, even with how things are going for Microsoft, there is the question of next-gen hardware. Though Phil Spencer has promised that the company will “definitely” make more Xbox consoles in the future, some may wonder if there’s much point. I wrote last month about how the brand is going beyond a single exclusive console set-up, finding success with PC and cloud gaming while potentially venturing into the handheld PC space. It now seems to have discovered an approach that could consolidate its current third-party approach with its successes.

According to Windows Central’s Jez Corden, Microsoft reportedly has two devices in the works. The first is a portable gaming PC codenamed Keenan with Xbox branding, including the Guide button and similar “design sensibilities.” It allegedly runs on Windows, thus granting access to the Windows Store but also supports PC Game Pass. However, it will allow for installing platforms like Steam. Keenan is reportedly out later this year, though the company has not indicated the same.

Nevertheless, this strategy makes a lot of sense, given Microsoft’s dominance in the PC gaming space. Windows practically is PC gaming, even if Windows 11 has been causing its fair share of problems among releases lately. Providing PC Game Pass and its catalogue on the go and access to Steam could make it a strong competitor, especially if it gets the pricing right against competitors like the Steam Deck. Heck, with so many first-party PlayStation Studios titles available, this could make for a unique handheld solution to playing PS5 ports on the go as well.

The other alleged part of the plan intrigues us, especially considering Microsoft’s current fortunes. Corden’s sources also reported that a new console, which includes a “premium successor” to the Xbox Series X, is in the works. This isn’t surprising, but it also appears this is alongside an Xbox gaming handheld and “several new controller options,” all launching in 2027.

None of this sounds particularly surprising – Microsoft has spoken about creating a handheld Xbox but said it was years away. It lines up with those statements, but there is the question of creating a portable Xbox while the company also has Kennan in the works. Then again, if you consider the latter as launching first and catering exclusively to the PC crowd, it makes sense.

The next Xbox raises some eyebrows, though, especially since Microsoft has been losing out on hardware revenue. You could argue, as would the company, that it’s a solid avenue for once again providing dedicated hardware for console game players. Meanwhile, it releases those same titles for other platforms, garnering extra revenue from the likes of the PS5 and, if rumors are true, the Nintendo Switch 2. A case of the company offering the best of both worlds, essentially.

While it makes sense to do so with the Xbox Series X/S, considering its age and lackluster revenue, would Microsoft be willing to invest in the same for a new console? Wouldn’t it make more sense to focus on the handheld Xbox and portable gaming PC, venturing into markets that are still relatively untapped with excellent line-ups?

Of course, we don’t have all the answers. It’s very much possible that the next Xbox is a cloud gaming machine as the rumors have foretold throughout the years, offering a unique console solution unlike anything else. Though its video game software revenue is up, that’s been more attributed to the success of Call of Duty (with some help recently from Indiana Jones and the Great Circle). You have to wonder if that extra revenue from first-party titles on other platforms would be enough to make up for any flagging sales in the future. That would also depend on the production costs associated with the hardware, of course.

It’s a difficult question to answer, but there’s no denying that Microsoft finds itself in a unique position again. If its approach is to inundate the market with various avenues to experience Xbox titles, be it on different screens or platforms, it’s certainly trending in the right direction. A portable PC with official Windows support, offering a cleaner approach compared to the likes of Lenovo and Asus, would be ideal for those on the go. Meanwhile, the Xbox handheld could serve as a strong alternative for the next console, allowing players to access Game Pass for consoles and even cloud gaming titles without spending as much.

And while it’s taken several years to get to this point, Microsoft is finally in a position to consistently pump out compelling first-party titles. The imminent future sounds promising with the likes of Fable, Gears of War: E-Day, Perfect Dark, State of Decay 3, South of Midnight, and much more in the works.

There are a lot of bases to cover – quality titles at a regular clip, excellent portable hardware, a premium console experience, unlike anything that’s come before, launching titles for other platforms, further building on Game Pass, and more. The future is still unknown, and a new console war, one that’s more malleable and doubtless confusing for those who want to take sides, could also very well be upon us.

There’s no denying that Microsoft has been unusually competent thus far with its current plans. It may be a while before the next Xbox is revealed, but for now, being hopeful of the company, given the past few years is a nice change of pace.

Note: The views expressed in this article are those of the author and do not necessarily represent the views of, and should not be attributed to, GamingBolt as an organization.

Reports of the same go back to 2016, with former chief Xbox officer Robbie Bach claiming there were plans, but Microsoft didn’t have the bandwidth and chose to focus on the Xbox 360. When asked by The Verge about a possible handheld (especially after liking so many tweets about the same), Microsoft Gaming CEO Phil Spencer replied, “I’m a big fan of handhelds. I’m a big fan, but nothing to announce.”

However, he brought up players having access to their games at a given time. “We’re kind of learning from what Nintendo has done over the years with Switch. They’ve been fantastic with that. So when I look at Steam Deck, the ROG and my Legion Go, I’m a big fan of that space.

“We do have real work. One of the weak points in the experience on a ROG or the Lenovo [Legion Go] is Windows. How Windows works on controller input only on that kind of DPI, on a smaller eight- or seven-inch screen. That’s a real design point that our platform team is working with Windows to ensure the experience is even better.” While this doesn’t outright confirm an Xbox handheld, there is some interest from Microsoft in the same.

For now, Xbox’s hardware teams seem to be considering different kinds of hardware. “I’m very proud of the work that the hardware team is doing, not only for this year but also into the future. [We’re] really thinking about creating hardware that sells to gamers because of the unique aspects of the hardware. It’s kind of an unleashing of the creative capability of our hardware team that I’m excited about.”

Perhaps we’ll learn more about those plans in the coming months. Stay tuned in the meantime for more updates.

For the longest time, an Xbox handheld used to be one of the things that many would speculate on- surely, the success of Nintendo in the field, as well as Sony with the PSP, meant that it was only a matter of time before Microsoft would jump in with their own Xbox branded handheld, right?

But that never happened- instead, the handheld market peaked with the DS and PSP, only to crater with the 3DS and Vita, losing marketshare to smartphones and tablets, and Microsoft missed the chance to enter a lucrative market. Why did this happen? Was an Xbox handheld simply never on the cards?

In an interview with IGN, former Chief Xbox Officer Robbie Bach explained that Microsoft definitely once had plans to make an Xbox handheld device- but that the launch of the Xbox 360, and the general disarray and lack of focus in the Xbox division meant that the hypothetical Xboy never came to fruition.

“There were definitely drawings,” Bach said. He shared that Microsoft felt as though they needed the Xbox to be a part of the ecosystem, but they didn’t have the bandwidth or the focus to put out a device in that category. In the long run, though, he also feels that it turned out to be for the best.

“For us it was a focus issue and as it turned out strategically it was a smart decision, but that’s somewhat accidental,” Bach said. Instead, by focusing on the Xbox 360, Microsoft could have an industry leading console, instead of having to fight a war on two fronts with a console and a handheld.

I personally would have welcomed an Xbox handheld- who knows how it might ave turned out? The DS, PSP, and their respective successors went on to be among my favorite systems of their respective generations- I’d have loved to see how Microsoft would have tackled the portable market, too.

Some of the rumoured features are :

40 Hours of Battery Life – Music

9 Hours Battery Life – Gaming

14 Hours Battery Life – Video

640 x 363 Pixel Resolution

Intel LV Atom Dual Core (733MHz)

128 MB RAM

32 GB Flash Drive

Bluetooth Support

ZuneX Originals

Xbox Live Arcade

OnLive Ready (Game Streaming)

We will se at E3 2009 whether this story holds any substance or not.