Microsoft has decided to halt the development of its Xbox handheld gaming console, according to a recent report. Initially anticipated to be introduced alongside the company’s next-generation console lineup, the Xbox handheld has been placed on indefinite hold. The tech giant is now concentrating on optimizing Windows 11 for handheld devices to ensure it competes effectively with Valve’s SteamOS, known for its superior performance and energy efficiency. Nonetheless, other upcoming consoles, such as the Xbox-branded Asus device, codenamed Project Kennan, will reportedly continue on schedule regardless of this shift in focus.
Microsoft Prioritizes Windows 11 Enhancement in Response to SteamOS Competition
Windows Central has reported that Microsoft has sidelined its internal plans for an Xbox handheld console, suggesting that it may not debut in 2027, alongside the upcoming generation of Xbox consoles. This development is distinct from other handheld devices currently in the pipeline, including Asus’ Project Kennan, which remains on track for a late 2023 release.
The company is pivoting to enhance Windows 11 for optimization on forthcoming handheld devices, suggesting that third-party handhelds could be released with a more refined iteration of Microsoft’s desktop operating system. Previous reviews of handhelds utilizing Windows have highlighted significant challenges, including limited battery life, navigation difficulties, and complications with software updates.
Microsoft’s renewed emphasis on Windows 11 for handheld devices possibly stems from the growing presence of SteamOS, which is expanding beyond the Steam Deck. Earlier this year, Lenovo launched the Legion Go S, which surpasses the Steam Deck in performance and operates on Valve’s operating system. Furthermore, SteamOS is projected to be utilized in a variety of handheld devices in the near future.
In addition to SteamOS-powered devices, Microsoft faces competition from the Nintendo Switch 2, which is set to release in various markets by June. This new offering from Nintendo is expected to contend directly with existing portable gaming consoles.
The strategic move towards optimizing Windows 11 for handhelds could significantly enhance user experiences with these devices. The Asus Project Kennan console is anticipated to launch in late 2025, as indicated by recent listings on the US FCC website, which have provided insights into its design.
The report indicates that Microsoft’s intended handheld could have supported Xbox games, and there are still plans for the company to introduce a native handheld device. However, it remains uncertain whether this product will arrive in 2027 or delay until 2028, which coincides with the launch of the next-generation consoles.
