Handheld Xbox Release Delayed for the Foreseeable Future

For quite some time, a significant number of gaming enthusiasts, including those from Engadget, have expressed a strong desire for Microsoft to create a dedicated Xbox handheld gaming console. Initially, there was a sense of anticipation that such a device could be on the horizon. However, recent reports indicate that Microsoft’s focus has shifted towards enhancing the performance of Windows 11 on existing third-party PC gaming handhelds, which have received considerable criticism for their functionality.

According to an exclusive report, it appears that a proposed standalone Xbox handheld system, which could have potentially launched in 2027 alongside the next-generation Xbox Series X, is not currently at the forefront of Microsoft’s priorities. Despite the company’s continued interest in this concept, it seems that internal developments for this handheld device, rumored to have various codenames according to Windows Central’s Jez Corden, are not actively in progress. Corden also notes that no workforce reductions have occurred due to this strategic pivot.

Even though the launch of a dedicated Xbox handheld may still be some time away, the report highlights Microsoft’s ongoing participation in the handheld gaming market. The company is collaborating with ASUS on a third-party console, internally known as “Project Kennan,” which is still aiming for a release in 2025. This device is expected to feature AMD’s Z2 Extreme chip, along with an enhanced Windows 11 experience that is more compatible with controller use, addressing earlier concerns.

The initial integration challenges faced by the software in previous iterations of PC handhelds, such as the Lenovo Legion Go and ASUS ROG Ally, have been problematic. This has contributed to the excitement surrounding the new gaming experiences that are no longer limited to the Steam Deck. Notably, the Lenovo Legion Go S has begun shipping with SteamOS pre-installed, marking a significant milestone as the first handheld device not produced by Valve to offer this feature.