Reports indicate that Microsoft is in the early stages of developing a handheld gaming console designed for the Xbox brand, with the first details regarding its specifications emerging online. In parallel, Asus is anticipated to unveil its own Xbox-branded handheld device featuring a dedicated Xbox button within the next few months. Allegedly, Microsoft’s version will utilize a low-powered processor crafted by AMD, according to sources familiar with the matter. Furthermore, Microsoft is expected to release its next-generation gaming console by 2027, intended to rival the speculated PlayStation 6.
AMD to Supply Custom Chip for Microsoft’s Handheld Device
Insights shared by a user known as KeplerL2 on the NeoGAF forums suggest that Microsoft will incorporate a custom low-power APU designed by AMD for its handheld gaming console. However, the leaker has not disclosed any specifics regarding the processor’s power consumption or architecture.
The source claims that this custom APU is designated for Microsoft’s “true” Xbox handheld, while competing products from other manufacturers, such as Asus, will be powered by alternative processors like the AMD Ryzen Z2 Extreme, Intel’s Lunar or Panther Lake CPUs, Nvidia’s N1, and the Snapdragon X Elite 2.
Earlier speculation suggested that Microsoft’s first-party handheld might feature an Arm-based chip, raising concerns about backward compatibility. Should the leaker’s information prove accurate, it implies that the Xbox handheld will likely support a broader library of titles.
While no launch date has been confirmed for Microsoft’s Xbox handheld, Asus is expected to introduce its Xbox-branded model shortly. Recently, the Asus ROG Ally 2 appeared on the US FCC website, along with a device known as ‘Project Kennan,’ which is noted for its black color scheme and Xbox button.
The black version of the ROG Ally 2 is rumored to be operated by an AMD Ryzen Z2 Extreme (36W) APU and to feature 64GB of RAM. In contrast, a less powerful white variant is expected to be equipped with an AMD Aeirth Plus (20W) APU. Both models are anticipated to feature a 7-inch display boasting a 120Hz refresh rate.
The upcoming ROG Ally console could debut soon with significant hardware enhancements. Asus has previously hinted at the device’s arrival through a post on X (formerly Twitter), although it did not clarify whether it would carry the Xbox branding. Microsoft responded with a meme to the post, potentially indicating a collaborative effort on the forthcoming Project Kennan handheld.
