After years of speculation, fresh reports now suggest that Xbox’s much-rumored handheld console is being developed in collaboration with Asus, the powerhouse behind the popular ROG Ally. According to a report from The Verge by Tom Warren, this partnership aims to unify the best of Xbox and Windows gaming, potentially delivering a unique handheld experience that could redefine mobile gaming. While details on the release date remain murky—with some sources hinting at a launch before the end of 2025 and others suggesting it could be as late as 2027—the buzz is undeniable.
Phil Spencer, CEO of Microsoft Gaming, confirmed the development of an Xbox handheld back in November 2024. Early indications showed that not only was a prototype in the works, but Xbox was also strategizing on how to compete in an increasingly crowded handheld market. Now, teaming up with Asus, the project—codenamed Project Kennan for the device and Project Bayside for its platform—appears set to leverage Asus’s extensive manufacturing expertise to streamline production and enhance performance.
This collaboration could be a game-changer. By merging the strengths of Xbox and Asus, the new handheld is expected to offer a seamless user interface across PC, console, and mobile platforms, along with an expanded game catalog. With the growing success of competitors like the Steam Deck, which reportedly sold between 3.7 and 4 million units from 2022 to 2024, Xbox is clearly eager to capture a slice of the handheld gaming market. The blend of Xbox’s rich gaming ecosystem and Asus’s proven hardware capabilities could present a compelling alternative for gamers worldwide.
Despite the promising outlook, uncertainty lingers around the actual release timeline. Some reports remain skeptical about the projected launch date, and while Xbox is developing strategies for market viability, the competition is fierce. Notably, the PlayStation Vita once outpaced other handhelds, and if Xbox can channel that momentum with a strong branded device, it might well become a leader in this segment.
As more details emerge, gamers and industry watchers will be keenly following updates on this innovative project. Whether the collaboration will lead to a handheld console that disrupts the market or simply adds another contender to the mix, one thing is clear: the future of portable gaming looks incredibly exciting.
