Rumor: Asus to Release Xbox Handheld by 2025 in Collaboration with Microsoft to Integrate Windows and Xbox Libraries

Late last year, Phil Spencer, CEO of Microsoft Gaming, mentioned that an Xbox handheld gaming device was still quite a ways off. But that doesn’t mean other manufacturers aren’t stepping up to the plate with Microsoft’s blessing. Insiders talking to The Verge suggest that Microsoft is working to bring Xbox and Windows closer together as a single unified platform. Helping to drive this initiative is Asus, which is said to be developing a product under the codename Project Kennan—a potential handheld gaming device that could hit the shelves this year, backed by Microsoft’s latest strategic moves.

While Asus focuses on the hardware, Microsoft has its sights set on Project Bayside. This initiative is about creating a unified Xbox user interface that can function seamlessly across different gadgets. In essence, it’s a Windows-based platform dressed in Xbox attire, aiming to power the projected Asus handheld. Together, Projects Kennan and Bayside represent Microsoft’s bid to merge the best features of Xbox and Windows worlds.

Earlier this year, Jason Ronal, the VP in charge of Xbox gaming devices and their ecosystem, confirmed to The Verge that the company is prioritizing this integration strategy, with anticipated tangible outcomes expected by year’s end. However, as promising as these reports sound, neither Microsoft nor Asus has issued an official statement or teaser to build the excitement.

The gaming community saw a significant shift when Valve released the Steam Deck in 2022, reigniting interest in portable consoles. Despite this, Microsoft maintains a lead in certain areas; many top-tier PC gaming handhelds rely on Windows 11. The recent unveiling of Lenovo’s Legion Go S, powered by SteamOS, might change the dynamics. Currently, the Windows 11-equipped Legion Go S is priced at $729, while its SteamOS counterpart, expected to launch in May, will come at just $499. Lenovo has also announced plans for a more budget-friendly Windows version at $599 around the same time, but the tempting price of the SteamOS model could lure many gamers in its direction.

This development has likely sounded alarms at Microsoft. An established partner like Lenovo offering an appealing OS alternative with SteamOS this May signifies Valve’s growing ambition to rival Windows. Microsoft, already facing challenges from the PlayStation 5 in the console arena, won’t want SteamOS gaining the upper hand in the handheld market. With stakes this high, it’s crucial for Microsoft to ensure that Xbox and Windows remain the go-to choice for handheld gaming enthusiasts.