Xbox Handheld Shake-Up: Microsoft Sidelined Own Device, Champions Third-Party Portables & Windows 11 Boost
The dream of a first-party Xbox handheld device, long teased and fervently wished for by fans, appears to be taking a strategic detour. Recent reports indicate Microsoft is sidelining the development of its own dedicated Xbox handheld, shifting its immediate focus to bolstering the ecosystem for third-party portable gaming PCs, with a particular spotlight on the upcoming ASUS “Project Kennan.”
This isn’t the first time an Xbox handheld has been on the Redmond giant’s mind. Xbox boss Phil Spencer first mentioned a “roughly designed” concept back in 2017, and recurring comments have kept speculation alive. Earlier this year, in March, Windows Central suggested a multi-pronged approach: an Xbox-branded portable gaming PC via a third-party (codenamed Kennan) for 2024, followed by an internally developed Microsoft device around 2027, alongside a next-gen Xbox console.
However, the latest intelligence from Windows Central suggests a significant strategic pivot. Development of Microsoft’s own handheld has reportedly been “sidelined.” Instead, the company has internally announced a reprioritization, channeling its teams to “improve Windows 11 gaming performance, specifically for devices like the ASUS partner device Project Kennan.” (It’s worth noting the codename was initially reported as “Keenan” but has since been updated.)
This doesn’t spell the complete end for a Microsoft-made portable Xbox. Sources suggest the company “still has big ambitions and is investing heavily to deliver a native Xbox handheld.” For now, though, the immediate resources are being poured into enhancing the Windows 11 experience for partner devices.
What About ASUS’s Project Kennan?
The good news for portable gaming enthusiasts is that the ASUS “Project Kennan” device is reportedly “essentially finished” on the hardware front. Currently, there’s a “significantly boosted effort” between Microsoft’s Xbox and Windows teams to refine the software experience. The plan remains for this Xbox-branded ASUS device to launch later this year.
Why the Shift? Competition and Ecosystem Strength
Microsoft’s decision to double down on Windows 11 for third-party handhelds likely stems from the burgeoning and increasingly competitive portable PC gaming market. Valve’s Steam Deck has carved out a significant niche, and SteamOS is now becoming available on various third-party devices, including the officially partnered Lenovo Legion Go S. Strengthening Windows as a viable, performant OS for these devices is crucial for Microsoft to maintain relevance in this space.
Beyond Handhelds: The Next-Gen Xbox and Cloud Ambitions
While handheld plans are evolving, Microsoft’s core console and cloud ambitions remain strong. Xbox president Sarah Bond has previously touted the next Xbox (successor to Series X/S) as delivering “the largest technical leap that you will have ever seen in a hardware generation.” Windows Central reports that “three prototype devices are in development for Microsoft’s Gen-10 effort.” Furthermore, Microsoft is said to be working on “next-gen Xbox cloud systems” aiming to bring latency more in line with competitors like NVIDIA’s GeForce Now.
Eyes on the Games
For the immediate future, gamers can look forward to learning more about Xbox’s upcoming software slate. The Xbox Games Showcase is set to air on Sunday, June 8th, at 6 pm UK time (10 am PT / 1 pm ET), promising fresh reveals and updates as the Summer Game Fest season kicks off.
In essence, while a purely Microsoft-built Xbox handheld might be further out than anticipated, the company is strategically investing in making Windows 11 a premier platform for the wave of third-party gaming portables, starting with the promising ASUS Project Kennan.
