Asus Set to Release Xbox Handheld in 2025, Collaborating with Microsoft to Integrate Windows and Xbox Libraries

Last year, Phil Spencer, the CEO of Microsoft Gaming, hinted that an Xbox gaming handheld might still be a few years down the road. Yet, that hasn’t stopped other manufacturers from rolling up their sleeves and diving into the project, with Microsoft’s blessing. Sources from The Verge indicate that Microsoft is keen on merging Xbox and Windows into a unified platform, and Asus is stepping up as one of Microsoft’s partners in this endeavor. Asus is reportedly involved in what’s being called Project Kennan, a gaming handheld initiative that might hit the market as early as this year, riding the wave of Microsoft’s integration efforts.

In addition to what Asus is crafting, Microsoft’s working on Project Bayside. This is a framework designed to create a consistent Xbox-inspired user interface across multiple devices. The Asus handheld will feature this interface, essentially a Windows framework dressed up with an Xbox aesthetic. The convergence of Kennan and Bayside shows Microsoft is serious about blending the strengths of Xbox with Windows.

Earlier this year, Jason Ronald, who oversees Xbox gaming devices and the ecosystem, shared with The Verge that this integration is the company’s main focus. He anticipates seeing concrete results by the end of this year, though an official announcement or even a teaser from either Microsoft or Asus remains elusive.

The atmosphere of excitement surrounding handheld gaming consoles was revitalized when Valve launched the Steam Deck in 2022. For now, Microsoft seems to have the upper hand with the majority of top-tier PC gaming handhelds running on Windows 11. However, the dynamic might shift soon with Lenovo’s introduction of the Legion Go S. This portable device currently sells for $729 with Windows 11, while a more budget-friendly SteamOS version expected in May will be priced at $499. Lenovo also plans to offer a less expensive Windows version around the same time for $599. This slight price drop might entice some gamers to consider the SteamOS edition.

This development is certainly on Microsoft’s radar, especially with a major partner like Lenovo embracing SteamOS as a viable alternative. Valve is beginning to pose serious competition to Windows with its SteamOS, a move Microsoft can’t afford to ignore, especially as it grapples with competition from the PlayStation 5. To maintain its foothold in the market, Microsoft must take steps to ensure that its Xbox and Windows platforms remain the go-to choice for those venturing into handheld gaming.