Asus to Potentially Release Xbox Handheld in 2025, Collaborating with Microsoft to Merge Windows and Xbox Libraries

Last year, Microsoft Gaming’s CEO, Phil Spencer, mentioned that an Xbox handheld gaming device was still some years down the line. But that hasn’t stopped other manufacturers from exploring the idea with Microsoft’s blessing. Sources from The Verge suggest that Microsoft aims to merge Xbox and Windows into a single harmonious platform, and Asus is set to be a key launch partner in this venture. Asus is diligently working on something known as Project Kennan, a gaming handheld likely to take full advantage of Microsoft’s integration efforts, with a potential release as soon as this year.

On top of what Asus is creating, Microsoft is busy developing Project Bayside. This is a framework designed to unify the Xbox user interface across various devices. It’s set to power Asus’s handheld, being a Windows-based system enhanced with an Xbox-themed skin. Both Project Kennan and Bayside reflect Microsoft’s strategy to integrate the finest aspects of Xbox and Windows for a seamless gaming experience.

Jason Ronal, Microsoft’s Vice President of Xbox gaming devices and ecosystem, shared with The Verge earlier this year that the company is prioritizing this integration. He hinted that we might start seeing some tangible results later in the year. While these whispers are exciting, we’re still waiting for official confirmation or even a teaser from the involved parties.

The release of the Steam Deck by Valve in 2022 revitalized interest in handheld gaming consoles. Yet, Microsoft still maintains an edge due to a wide variety of PC gaming handhelds running on Windows 11. However, the landscape might shift with Lenovo’s announcement of the Legion Go S, which will run on SteamOS. This device is currently available with Windows 11 for $729. However, a more pocket-friendly SteamOS version will debut in May for $499, offering a cheaper alternative. Additionally, Lenovo plans to release a less expensive Windows-powered Legion Go S around the same time, priced at $599, but the $100 difference might push gamers to consider the SteamOS version instead.

This development is likely to catch Microsoft’s eye, given that one of its significant OEM partners is endorsing an alternative OS. This scenario highlights Valve’s move to rival Windows with SteamOS. With Microsoft already navigating the competitive waters against the PlayStation 5 in the console market, it surely wishes to avoid letting Valve’s SteamOS gain ground in handhelds. To keep its foothold, Microsoft needs to act decisively, ensuring that Xbox and Windows remain the go-to platforms for handheld gaming.