Asus Expected to Debut Xbox Handheld in 2025, Collaborates with Microsoft to Merge Windows and Xbox Libraries

Last year, Phil Spencer, the CEO of Microsoft Gaming, mentioned that an Xbox gaming handheld was something we wouldn’t see for a few years. But that doesn’t mean other companies aren’t gearing up to make one with Microsoft’s blessing. Sources at The Verge reveal that Microsoft is looking to merge Xbox and Windows into a seamless platform, and they’ve teamed up with Asus to kick off this venture. Asus is working on something called Project Kennan, a gaming handheld device likely to get a boost from Microsoft’s endeavors, and there’s a possibility it could debut this year.

Aside from what Asus is developing, Microsoft is busy with Project Bayside, a framework set to bring a consistent Xbox interface to various devices. This new structure will drive the gaming handheld that Asus is crafting; think of it as a Windows base dressed up with an Xbox look and feel. Projects Kennan and Bayside are integral parts of Microsoft’s strategy to blend the strengths of Xbox and Windows.

Earlier this year, The Verge chatted with Jason Ronal, the VP of Xbox gaming devices and ecosystem at Microsoft. He emphasized their commitment to this integration and hinted that we might see some tangible progress before the end of the year. Still, we’re waiting to hear anything definitive or even a teaser from either Microsoft or Asus.

The gaming landscape shifted with Valve’s release of the Steam Deck in 2022, sparking a renewed interest in handheld gaming devices. Yet, Microsoft holds an upper hand when it comes to variety since numerous top PCs are running on Windows 11. However, things could be taking a turn. Lenovo announced the Legion Go S, powered by SteamOS, stirring the pot. The Windows 11 version of Legion Go S is available now for $729, but its SteamOS counterpart, expected in May, is priced at a more wallet-friendly $499. There’s also a more affordable Windows version slated for May at $599. This price difference might sway gamers toward the SteamOS version.

This move by Lenovo might have given Microsoft cause for concern. One of its biggest and long-standing partners is launching an attractive alternative operating system. It illustrates a growing competition between Valve’s SteamOS and Windows. With Microsoft already feeling the pressure from the PlayStation 5 in the console market, it can’t afford to ignore Valve’s burgeoning presence in the handheld sector. To safeguard its turf, Microsoft needs to ensure that Xbox and Windows remain the go-to choices for gamers on the move.