Asus to Launch Xbox Handheld in 2025, Collaborates with Microsoft to Integrate Windows and Xbox Libraries

Late last year, Phil Spencer, the CEO of Microsoft Gaming, mentioned that an Xbox gaming handheld was still a long way off. Even so, that hasn’t stopped other manufacturers from exploring the idea with Microsoft’s blessing. According to sources at The Verge, there’s a big push from Microsoft to merge Xbox and Windows into a unified platform, with Asus jumping on board as a launch partner. Word has it that Asus is hard at work on Project Kennan, a codename for a gaming handheld that could hit the market within the year, leveraging Microsoft’s unified strategy.

Alongside Asus’s hardware endeavor, Microsoft is developing something called Project Bayside. This is essentially a framework designed to ensure a seamless Xbox interface across various devices. Asus’s handheld, designed with Windows at its core but sporting an Xbox-themed interface, will run this system. Both Project Kennan and Bayside appear to be parts of Microsoft’s bigger plan to blend the strengths of Xbox and Windows.

Earlier this year, Jason Ronal, Microsoft’s VP of Xbox gaming devices and ecosystem, shared with The Verge that their primary focus lies in this integration, with potential outcomes anticipated later in the year. While these developments are certainly exciting, we’re yet to hear any official announcements or even teasers from the companies involved, adding an extra layer of intrigue.

It was Valve that revitalized the appeal of handheld gaming consoles when it rolled out the Steam Deck in 2022. Despite this, Microsoft still retains an edge with more options since most of the top PC gaming handhelds are driven by Windows 11. However, with Lenovo dropping the Legion Go S – which uses SteamOS – the tide might be turning. Currently, you can purchase the Legion Go S with Windows 11 for $729. The SteamOS variant is set to launch in May and is expected to be priced significantly lower at $499. There’s also buzz about a less expensive Windows version launching around the same time for $599, but that $100 saving might sway gamers towards the SteamOS model.

This shift hasn’t gone unnoticed by Microsoft, especially since a key partner is rolling out a popular alternative OS. It signals a growing clash between Valve’s SteamOS and Windows. Already feeling the heat in the console arena against PlayStation 5, Microsoft is likely eager to avoid a similar scenario with Valve’s SteamOS in handheld gaming. To retain its market position, Microsoft will need to ensure that Xbox and Windows continue to be the go-to choice for gaming on the go.