Asus Set to Release Xbox Handheld in 2025, Collaborates with Microsoft to Integrate Windows and Xbox Libraries

Last year, Microsoft Gaming’s CEO, Phil Spencer, mentioned that an Xbox gaming handheld wasn’t on the immediate horizon. Nevertheless, this doesn’t mean other manufacturers are sitting idle. Indeed, they’re possibly crafting something exciting with Microsoft’s blessing. Insider tips, shared by The Verge, hint at Microsoft’s grand plan to merge Xbox and Windows into a seamless platform. Asus appears to be an essential player in this initiative, working on what’s currently whispered about as Project Kennan—a handheld gaming device that might see daylight sooner than expected, possibly even later this year.

Asus isn’t just focused on crafting the hardware. Microsoft is also rolling up its sleeves with Project Bayside, a platform designed to bring consistency to the Xbox user experience across multiple devices. This framework will support the handheld concept emerging from Asus, blending Windows functionality with an Xbox-themed interface. So, it’s clear that both Project Kennan and Project Bayside are crucial steps toward merging the best motifs of Xbox and Windows.

Jason Ronal, who holds a vital role as VP of Xbox gaming devices and ecosystems at Microsoft, dropped some hints to The Verge earlier this year. He emphasized the company’s dedication to this integration, with potential developments visible within the year. Even with this insight, we’re still eagerly waiting for official word—or even a teaser—from Microsoft or its partners to confirm these exciting prospects.

The handheld gaming scene was revitalized by Valve’s launch of the Steam Deck back in 2022. Amidst these developments, Microsoft stands its ground with a diverse lineup, as many top-tier PC handheld gaming devices run on Windows 11. However, Lenovo’s entry with the upcoming Legion Go S, powered by SteamOS, could shake things up. Lenovo offers the Legion Go S with Windows 11 for $729, but an affordable SteamOS version will hit the markets in May at $499. Additionally, Lenovo plans a cost-effective Windows variant for around $599. This slight price differential might steer gamers towards the SteamOS option.

These shifts wouldn’t go unnoticed by Microsoft, given that a significant OEM partner like Lenovo is aligning with an alternative OS. The gaming tech giant Valve is throwing down the gauntlet with SteamOS as a rival to Windows. With current pressure from the popular PlayStation 5, the last thing Microsoft wants is another competitor encroaching on handheld console territory. To maintain its market presence, Microsoft knows it must reinforce Xbox and Windows as the go-to systems for portable gaming enthusiasts.