How Xbox’s Future Could Disrupt Everything We Know About Console Gaming
Console or PC? Why not both?

It’s no secret that Microsoft has big plans for Xbox. The top brass at the company’s gaming division has talked openly about the existence of another premium console and about a handheld that will borrow all the best elements from devices like the Steam Deck and ASUS ROG Ally.
But a new report from Windows Central gives us a clearer picture of what might be in store for the tech giant in the coming years, including a pretty bold step in Xbox’s long-term plan to blur the lines between its console business and PC gaming.
In its report, Windows Central confirms that the Xbox handheld, tentatively codenamed “Keenan,” will be a collaboration between Microsoft and an unknown hardware manufacturer. The device will be an Xbox-branded device through and through, complete with an Xbox Guide button. The publication also reports that the handheld will likely run a modified, gamepad-friendly version of Windows like the last few generations of Xboxes, which stands to benefit other gaming-capable devices running Windows. As expected, Game Pass will be featured “front and center.” The handheld will replace the Series S as the cheaper, first-party entry point into Xbox’s broader subscription-based ecosystem.
Microsoft’s on handheld PC is coming much sooner than expected, according to Windows Central.
While this all aligns with what Phil Spencer’s alluded to a few times, what doesn’t is the timeline of its release. The report suggests that the handheld is due as soon as the end of 2025. It’s a much quicker turnaround from the device than expected, as Spencer told Bloomberg last November that the handheld would be a few years out.
Where things get interesting is what the report says about the next Xbox console. Microsoft CEO Satya Nadella has already greenlit the successor to the Series X and S, which is expected to release in 2027. Rather than running a closed, modified version of Windows the way Xbox traditionally has, the console will supposedly run an operating system closer to vanilla Windows, in hopes of reducing the work developers must do to port a game between Xbox and PC.
Running an OS similar to Windows won’t just benefit developers. Support for third party digital storefronts like Steam, Epic Game Store, and GOG is also expected according to the report, alongside the continued support of legacy games through backwards compatibility. Lastly, it seems that Microsoft is ditching the two-SKU model of the Series X and the all-digital, less capable Series S. Perhaps they’re noting how unpopular the Series S and its parity mandate is with some developers, even if the surprisingly robust console was a big success for them.
Xbox is reportedly ditching the two console strategy during its next console cycle.
The most interesting part of all of this is the potential of a console that finally removes the hardline between PC and consoles. Xbox has been inching towards this inevitability for ages now, adding cross saves between console, cloud, PC, and even Steam games. But the missing link in all of this has been bridging the gap between the few features that are still exclusive to Xbox consoles and the more open and infinite PC library.
The ability to jump from a Game Pass Game to a game in my Steam library, to a disc-based Xbox 360 game, is a game changer that could differentiate Microsoft’s next console from all competitors. If they can also spare the R&D needed to ensure running games remains as painless as it’s always been on console, Xbox could make PC games accessible to those who don’t want the hassle of building a PC in the same way the Steam Deck has in handheld form.
It’s sure to be a relatively niche feature among players who simply want to play what’s new. But for those who want a single machine that runs most of the games they own regardless of format or storefront, this is a feature that could make Xbox mean something in its platform agnostic-era. You can’t buy a PC that will play your old Xbox games. But an Xbox that will play PC backlogs for an affordable price is sure to be appealing to most audiences. Not to mention the ability to finally access PC Game Pass games on a console would give the Ultimate tier all the more valuable.
Xbox could do for PC gaming what the Steam Deck did before it - remove the hassle of tinkering with hardware.
The biggest qualifier is whether Xbox decides to keep its disc drive in future hardware. While the company has created an internal team dedicated to preserving backward compatibility in all of its formats, it’s also released several all-Digital consoles. Who knows if they’ll continue to embrace the dwindling number of people who’ve kept their physical games over the last two decades, when they could just as easily resell those games to that small sector of customers.
It continues to be an interesting time for Xbox. While it remains to be seen if the current strategy to remain a player in gaming will pay off, its efforts to pull console and PC gaming closer than ever in the process could only benefit consumers in the long run. Here’s to hoping Xbox will be bold enough to do it.