Microsoft plans to launch its next-generation Xbox hardware, including an Xbox handheld device, in 2027. The handheld is expected to be more integrated with Windows, potentially using a design similar to the "Metro" interface from Windows Phone and Windows 8. This new approach aims to streamline game development by aligning Xbox consoles more closely with Windows, allowing for easier porting of PC games. The design of the handheld is still in development, with a focus on comfort and functionality, and it will need to compete with other devices like the Nintendo Switch and Steam Deck. The operating system will play a crucial role in user experience, with a simpler interface being a priority to enhance accessibility for gamers.