Asus to Potentially Release Xbox Handheld by 2025, Collaborates with Microsoft for Unified Windows and Xbox Libraries

Late last year, when asked about Xbox’s future, Microsoft Gaming’s CEO, Phil Spencer, hinted that an Xbox gaming handheld might be quite some time away. But that doesn’t mean other manufacturers aren’t stepping up to the plate. In fact, sources from The Verge suggest Microsoft is on a mission to bring Xbox and Windows closer together as one unified platform. Leading this charge is Asus, tasked with the development of Project Kennan, a gaming handheld that’s poised to take advantage of Microsoft’s ambitious plans, potentially hitting the market as soon as this year.

This isn’t just about the hardware Asus is crafting. On the software side, Microsoft is investing in Project Bayside, a framework designed to offer a consistent Xbox user experience across a variety of gadgets. Imagine playing on a handheld sporting the Windows base but topped with a sleek Xbox interface. Both Project Kennan and Bayside are key to Microsoft’s strategy of blending the best elements of Xbox and Windows.

Jason Ronal, the VP overseeing Xbox gaming devices and its ecosystem, spilled some insights to The Verge earlier this year. He explained how the team is laser-focused on this integration and expects to see tangible progress as the year continues. While these leaks give us plenty to be excited about, we’re still waiting for official word or even just a sneak peek from either Microsoft or Asus.

Valve definitely made waves in the handheld gaming scene with the Steam Deck’s release in 2022. Yet, for now, Microsoft holds a slight edge with Windows 11 running many top-tier PC gaming handhelds. However, this landscape may shift following Lenovo’s recent unveiling of the Legion Go S, which will also be available with SteamOS. The current Windows 11 version is priced at $729, but come May, the SteamOS variant will hit shelves at a competitive $499. Lenovo also plans to lower the price of the Windows iteration to $599 around the same time, but the $100 saving might tempt buyers toward the SteamOS option.

This shake-up surely hasn’t escaped Microsoft’s notice. With a historically close partner exploring rival systems, the competition is heating up as Valve’s SteamOS begins to square off against Windows’ territory. Already wrestling with PlayStation 5 in the console ring, Microsoft definitely won’t want to see Valve gaining ground in portable gaming. It seems clear that to maintain its dominance, Microsoft needs to ensure the Xbox-Windows combination remains top of mind for any handheld gaming enthusiast.