Microsoft has reportedly shifted focus away from developing its own standalone Xbox handheld console. Initially, plans suggested the release of a first-party handheld device around 2027, possibly concurrent with the next-generation Xbox. However, according to a recent report by Windows Central, Microsoft’s priorities have changed, emphasizing improvements to Windows 11 gaming performance on third-party devices instead. The company is now collaborating with partners such as Asus, whose Xbox-branded handheld device, codenamed Project Kennan, is nearing completion.
Internal communication indicates a stronger emphasis on supporting third-party original equipment manufacturers (OEMs) in the interim. Photos of Asus’ Xbox-branded handheld device, the ROG Ally 2, surfaced online earlier this month through an Indonesian certification office. These images, available in both white and black, referenced a now-deleted FCC listing in the U.S. Windows Central notes that the hardware development is nearly complete, with expectations that it will be among the first devices to feature the AMD Z2 Extreme processor.
While specific technical details remain sparse, rumors suggest the devices are currently undergoing open testing at Microsoft headquarters. Last month, an Asus Republic of Gamers (ROG) teaser hinted at both a new Xbox controller and handheld system, to which the official Xbox account responded playfully, hinting at an upcoming formal announcement.
Meanwhile, the successor to the Xbox Series X is reportedly fully in production and set for release in two years. Xbox president Phil Spencer has emphasized Microsoft’s commitment to delivering groundbreaking advancements with its next-generation hardware.
