Asus Set to Launch Xbox Handheld in 2025 with Microsoft’s Help to Integrate Windows and Xbox Libraries

Late last year, Phil Spencer, CEO of Microsoft Gaming, mentioned that an Xbox handheld console wasn’t on the immediate horizon. However, that doesn’t rule out other manufacturers stepping in, especially with Microsoft’s blessing. Sources from The Verge suggest Microsoft is in the process of merging Xbox and Windows into one unified platform, and Asus is on board as a launch partner. Asus is reportedly developing a device known internally as Project Kennan, a gaming handheld potentially ready to debut this year, which aligns with Microsoft’s consolidation efforts.

In conjunction with Asus’s hardware endeavors, Microsoft is also working on something called Project Bayside. This initiative aims to create a standardized Xbox user interface that will look consistent across various devices. Essentially, what Asus is building will operate on Windows but will have an Xbox-themed appearance. It seems both Project Kennan and Project Bayside are part of Microsoft’s vision to blend Xbox and Windows seamlessly.

Earlier this year, Jason Ronal, VP of Xbox gaming devices and ecosystem, shared with The Verge that the company is investing heavily in this integration, with hopes to showcase tangible results by year’s end. Yet, despite the buzz circulating around these developments, neither Microsoft nor Asus has released an official statement or teaser.

The handheld gaming console scene got a significant boost with Valve’s release of the Steam Deck in 2022. Yet, Microsoft still holds a considerable advantage as many top-tier PC gaming handhelds are running on Windows 11. Lenovo is shaking things up with its Legion Go S, which uses SteamOS. Currently available with Windows 11 for $729, the upcoming SteamOS version due in May is priced at a competitive $499. Not to be left behind, Lenovo plans to introduce a more budget-friendly Windows variant at $599 around the same time, though the mere $100 price difference might sway gamers towards the cheaper SteamOS edition.

This move by Lenovo is likely on Microsoft’s radar, especially given it’s a significant partner opting for an increasingly popular alternative operating system this coming spring. Valve’s challenge against Windows with SteamOS is evident, and as Microsoft is already vying for dominance against the PlayStation 5, they probably have no desire to let Valve make strides in the handheld market. To avoid losing momentum, ensuring Xbox and Windows continue to be the favoured choices for handheld gaming is crucial for Microsoft.