A lot of people (not least Engadget’s own ) have been asking Microsoft to make an Xbox-branded handheld for a long time. And it looked for a while like we might be getting in the not-so distant future. But Microsoft’s priorities have reportedly shifted to improving the widely criticised performance of Windows 11 on existing third-party PC gaming handhelds.
In an exclusive report, claims that a dedicated Xbox handheld system, which could have launched in 2027 alongside the successor to the Xbox Series X, isn’t the company’s main area of focus right now, even if it remains keen on the idea. An internally developed handheld, for which Windows Central’s Jez Corden says he has seen a number of different codenames, is not currently being worked on, and he adds that no layoffs have taken place as a result of the strategic shift.
While a native Xbox device might be some way off, the report makes clear that Microsoft is still very much active in the handheld market. A third-party console that it has been working on with ASUS, codenamed “Project Kennan”, is still targeting a 2025 launch. It's likely this device, which could be equipped with AMD’s Z2 Extreme chip, will ship with an improved Windows 11 experience better suited to a controller interface.
The software’s awkward integration in early iterations of PC handhelds like the Lenovo Legion Go and ASUS ROG Ally has been a big problem, and it’s partly why people are so excited about the experience no longer being exclusive to the Steam Deck. The Lenovo Legion Go S started shipping with SteamOS running out of the box this week, the first handheld not made by Valve to do so.
