Microsoft is rumored to be expanding its gaming hardware lineup with the introduction of an Xbox handheld device set to be released later this year. While the tech giant has been focusing on a multiplatform strategy for its major games, it seems that they are not ready to step away from hardware just yet. This new handheld console, codenamed “Keenan,” is expected to hit the market alongside the company’s next-gen consoles, which are slated for release in 2027.

According to a recent report by Windows Central, the Xbox handheld will be a PC gaming device manufactured by an existing OEM. It is said to feature an official Xbox guide button and is anticipated to launch in the near future. Additionally, there are speculations that this device could potentially replace the current Xbox Series S generation of consoles if it proves to be successful in the market.

One of the exciting features rumored to be included in the next generation of Xbox controllers is “direct-to-cloud connectivity.” This suggests that players may have a seamless gaming experience with faster loading times and smoother gameplay. Furthermore, Microsoft’s advancements in generative AI and their Windows platform for PC are expected to significantly impact the future of Xbox gaming, showcasing the company’s commitment to innovation in the gaming industry.

Last year, Microsoft Gaming CEO Phil Spencer hinted at the possibility of a gaming handheld being in development, although the final product was still a few years away. With the recent news of the Xbox handheld’s imminent release, it appears that Microsoft is taking a step forward in this direction. At CES 2025, Jason Ronald, Microsoft’s VP of “Next Generation,” expressed their goal of merging the best features of Xbox and Windows to create a unique gaming experience on handheld devices, potentially competing with other gaming platforms like SteamOS.

As the gaming industry continues to evolve, Sony is rumored to be working on a new line of gaming handhelds, while Nintendo’s highly anticipated Switch 2 is on the horizon. Microsoft’s approach to this competition, however, seems to be different. Instead of focusing on exclusives, the company has been making its games available on other platforms such as PlayStation 5 and the existing Switch. With its powerful hardware capabilities, Microsoft is poised to deliver even more Xbox games on the upcoming Switch 2. Additionally, Microsoft has committed to bringing popular titles like Call of Duty back to Nintendo’s platform, indicating a shift towards a more collaborative approach in the gaming industry.

In conclusion, Microsoft’s rumored Xbox handheld is generating a buzz among gaming enthusiasts as the company continues to innovate and expand its hardware offerings. With a focus on merging the best of Xbox and Windows technologies, this new device is expected to provide an exciting gaming experience for players. As the gaming landscape evolves with new competitors entering the market, Microsoft’s strategic moves suggest a promising future for gaming enthusiasts worldwide.