Microsoft reportedly has plans set in motion to release its next Xbox in 2027. Along with the new console, there might be another handheld with this one being a proper Xbox handheld. What might happen is that the handheld is a lower-powered console, like the Xbox Series S, and the new home console will be more like the Xbox Series X.

If this second handheld system happens, we'd expect it to be more like a 'traditional' Xbox console that supports console games. If the above 2025 system launches and Microsoft continues to work on compatibility for a few years, the team could potentially get existing Xbox console games running on this new device.

The next Xbox console will allegedly be the first to allow third party digital storefronts, a moment that could merge the two gaming markets once and for all.

Xbox next-gen console and handheld release dates leaked: what we know - The two gaming machines will finally reveal Microsoft’s grand plan to merge Xbox with Windows

If we do get a new set of Xbox consoles in 2027, it could mean that we lose a very important decades-long tradition for the Elder Scrolls franchise.

A next-generation, full-size Xbox will take another two years, according to anonymous sources, but Microsoft's take on the handheld gaming PC could debut in the coming months.