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

Last year, Phil Spencer, the CEO of Microsoft Gaming, mentioned that an Xbox gaming handheld wouldn’t be hitting the market anytime soon. But that doesn’t imply other manufacturers are sitting idle. Microsoft is reportedly collaborating with various OEMs to push handheld gaming forward, and according to sources from The Verge, they’re working to meld Xbox and Windows into a seamless platform. Asus appears to be taking the lead in this initiative with something dubbed “Project Kennan,” a handheld gaming device that might benefit from Microsoft’s ongoing efforts and could potentially be unveiled this year.

In tandem with the hardware from Asus, Microsoft is developing “Project Bayside.” This framework aims to create a consistent Xbox user interface across a variety of devices, essentially operating on Windows but styled with an Xbox overlay. The integration of Kennan and Bayside highlights Microsoft’s strategy to merge the strengths of Xbox and Windows into a cohesive experience.

Jason Ronal, the Vice President overseeing Xbox gaming devices and ecosystems at Microsoft, remarked earlier in the year to The Verge about the focus on this integration. He hinted at the possibility of seeing tangible results soon. However, even with these promising whispers, we still lack any official statement or teasing from either corporation.

The landscape of handheld gaming has been reshaped since Valve shook things up with the release of the Steam Deck in 2022. Despite Valve’s bold move, Microsoft holds an edge thanks to Windows 11, which powers many of the top PC gaming handhelds. Lenovo’s recent announcement of the Legion Go S, powered by SteamOS, could disrupt this dominance. While the Windows 11 version is available now for $729, the SteamOS model, priced attractively at $499, is expected this May. There’s also word of a forthcoming cheaper Windows variant priced at $599. This $100 difference might sway many gamers towards the SteamOS option.

This shift in the handheld market likely has Microsoft’s attention, as one of its major OEM partners is bringing a competitive OS alternative to the table. This presents a potential challenge, with Valve positioning SteamOS against Windows. Already vying with Sony’s PlayStation 5 in the home console arena, Microsoft would likely want to avoid a similar contest with Valve in the handheld arena. Thus, preserving Xbox and Windows as the favored platforms for handheld gaming becomes crucial for Microsoft to maintain its market position.