Following reports earlier this week about Microsoft’s entry into the handheld gaming market, fresh details have emerged confirming that the first Xbox-branded handheld will, in fact, be manufactured by Asus.
Microsoft Gaming CEO Phil Spencer previously indicated that an in-house Xbox handheld was still years away, but new insights from The Verge suggest that Microsoft’s gaming division is collaborating with Asus to bring an Xbox-branded handheld to market in 2025.
Codenamed Project Kennan (not ‘Keenan’ as initially reported), the device is expected to run a custom version of Windows optimised for handheld gaming, with an Xbox-centric UI layered on top.
This move is part of Microsoft’s strategy to unify Windows and Xbox gaming. Asus, known for its ROG Ally series, is a natural choice for the partnership, and Spencer has previously praised its handhelds.
The device is rumored to feature an AMD Ryzen Z2 Extreme processor and an Xbox guide button, integrating seamlessly with Game Pass.
Microsoft is also developing its own first-party handheld for a 2027 launch alongside the next-gen Xbox console. Meanwhile, Project Bayside, a common Xbox UI for handhelds, is expected to enhance integration with Windows and third-party game launchers like Steam and Epic Games Store.
Microsoft’s Game Pass model could give the device a significant edge over competitors like the Steam Deck. With Asus set to unveil the Xbox handheld later this year, more details should emerge soon.
