Microsoft was getting ready to enter the handheld gaming device category with an Xbox handheld. The gaming device was expected to be released in 2025 and was aimed at taking on the Steam Deck and other Windows-based handhelds powered by SteamOS.
The device was expected to take design cues from the Xbox look, and it will be a native project. Then reports suggested that it will be developed with third-party developers such as Lenovo, ASUS, or MSI. Reports also suggested that ASUS had taken charge to bring the Xbox handheld device to the market, with leaked regulatory photos giving us a glimpse of how the upcoming device will look.
Now, a fresh report has popped up claiming that Microsoft was indeed working on a natively built Xbox handheld device, which, for now, has been sidelined. The company has reportedly shifted its focus to enhance Windows 11 gaming performance across third-party handhelds, including the one under development by ASUS.
According to Windows Central, insider sources reveal that Microsoft is focusing on the development of ASUS's handheld device, codenamed "Project Kennan." This is to take on the growing popularity of Valve's SteamOS. SteamOS handhelds such as Steam Deck are outperforming Windows 11-based devices in terms of power, performance, and efficiency.
ASUS's "Project Kennan" is supposed to launch by the end of this year, and most likely, the hardware side of things is finalized. The software experience is where Microsoft and ASUS are giving more time to polish, as they want to give the best Windows 11 gaming experience on portable devices.
Enhancement of the Xbox app functionality is also one of the objectives, along with streamlining system performance, that will elevate the gaming experience on handhelds like the ASUS ROG Ally and Lenovo Legion Go.
The good news? Microsoft hasn't given up on its native handheld dream. Reportedly, the company is still invested in the development of its very own handheld device. But for now, it has pivoted to helping third-party hardware development and perfecting it.
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