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There could be an official Xbox-branded handheld out by the end of this year. A new report states that Microsoft is partnering with a PC gaming company, like ASUS or Lenovo, on the device, with a targeted launch in 2025.

According to WindowsCentral, the handheld is codenamed Keenan and will be similar in nature to the upcoming Lenovo Legion Go S--which will be the first device outside the Steam Deck family to run on Valve's SteamOS. So, the Xbox-branded handheld will likely run on Windows, featuring the Microsoft Store and PC Game Pass. The report also states the system will likely sport an Xbox guide button and aesthetics that fit the Xbox ethos.

Interestingly enough, Microsoft Gaming CEO Phil Spencer mentioned an Xbox handheld is a "few years out" in November. (Spencer, for his part, has teased making an Xbox handheld for a while now, too.) This longer-term plan lines up with the report of the next Xbox launching in 2027. Basically, Microsoft plans to kick off the next generation with a Xbox Series X successor accompanied by an internally developed handheld system.

However, unsurprisingly, it's noted that this schedule could shift as Microsoft works on the future of the Xbox brand. For instance, WindowsCentral points to the Xbox-licensed handheld scheduled for this year to serve as sort of a test drive for Microsoft. There is also no specific details on the partnering company, which could also be Razer or MSI.

GameSpot has contacted Microsoft seeking comment on this report.

Earlier this year, a Call of Duty leaker claimed the next Xbox is planned for 2026. One aspect that Spencer has touched on is that the next Xbox hardware must be more innovative.