Asus May Release Xbox Handheld in 2025, Collaborating with Microsoft to Integrate Windows and Xbox Libraries

Last year, Phil Spencer, the CEO of Microsoft Gaming, hinted that a dedicated Xbox gaming handheld wasn’t just around the corner. But, that hasn’t stopped other manufacturers from forging ahead with plans to create one, reportedly with a nod of approval from Microsoft itself. Sources speaking to The Verge have revealed that Microsoft is on a mission to blend Xbox and Windows into a unified platform. One name that’s popping up as a launch partner in this ambitious endeavor is Asus. They’re hard at work on a project known as Project Kennan—an intriguing codename for a potential gaming handheld that could ride the wave of Microsoft’s latest integration efforts, maybe even making its debut this year.

It’s not just about the hardware though; Microsoft is all in with Project Bayside, a project aimed at harmonizing the Xbox user experience across various devices. This new framework will support Asus’s gaming device, working off of a Windows backbone enhanced with an Xbox-inspired interface. Both Kennan and Bayside are clearly part of Microsoft’s grand strategy to meld Xbox’s gaming prowess with Windows’ versatility in a seamless package.

Earlier in the year, Jason Ronal, the VP of Xbox gaming devices and ecosystem, talked to The Verge about the company putting a strong focus on this integration. He hinted that we might see some outcomes later this year. Despite the excitement, we’re still in the dark without any formal announcements or sneak peeks from Microsoft or Asus so far.

The landscape of handheld gaming was rejuvenated thanks to Valve’s launch of the Steam Deck in 2022, breathing new life into portable consoles. Meanwhile, Microsoft has managed to maintain a stronghold with Windows 11 powering the best PC gaming handhelds. But things might be stirring up with Lenovo’s teaser of the Legion Go S, which runs on SteamOS. You can already snag a Windows 11 version of the Lenovo Legion Go S for $729, but a forthcoming SteamOS variant is anticipated to be a more wallet-friendly $499, set to arrive in May. Lenovo promises a version of the Windows-powered Legion Go S at $599 around the same time, though the $100 saving might sway many towards the SteamOS alternative.

It’s a development that likely has Microsoft’s attention, especially considering a major partner like Lenovo is embracing a competing OS option this May. This poses a fresh challenge for Microsoft, highlighting that Valve’s SteamOS is ready to square off against Windows. As Microsoft maneuvers against the PlayStation 5 in the console arena, it clearly wouldn’t see another competitor rise in handhelds without concern. To maintain its stronghold, Microsoft’s task is clear: ensure Xbox and Windows stay at the forefront of handheld gaming preference.