Today, I bring you some updated information regarding Microsoft’s handheld gaming plans for Xbox. Earlier, I reported that Microsoft was developing a native Xbox handheld alongside a successor to the Xbox Series X, anticipated to launch around 2027. However, it appears that Microsoft’s priorities have changed somewhat.
UPDATE: This article previously mentioned “Pembrooke” as the codename for the handheld, but we’ve learned that this may be incorrect. Please stay tuned for further updates. It’s important to note that it is the internal Xbox handheld being put on hold, not the ASUS device “Kennan.” The rest of the report remains unchanged.
To clarify, Microsoft isn’t postponing the ASUS device “Kennan,” but rather shelving its internal Xbox handheld—at least for now. There are multiple codenames associated with this concealed device, but it’s unclear which is accurate as of now. Presently, there seem to be three prototype devices in development for Microsoft’s Gen-10 initiative, with the handheld project being paused.
Microsoft still aims to create its own Xbox handheld in the future, but the company has decided to focus its resources on enhancing Windows 11 gaming performance, especially for devices like the ASUS partner “Project Kennan.” The competitive pressure from SteamOS, which reportedly offers superior gaming performance compared to Windows 11, has likely influenced this decision. Our sources inform us that Microsoft is still heavily investing in developing its own Xbox gaming handheld technology for the future, but that internal announcements indicate an immediate focus shift toward third-party OEM handhelds.
The codename “Project Kennan” refers to Microsoft’s partner Xbox handheld with ASUS. Reports suggest that Kennan is aiming for a release later this year, with its hardware substantially complete. It’s believed to be one of the first devices to utilize the AMD Z2 Extreme, though we are still seeking confirmation on this.
There’s a concerted effort between Xbox and Windows teams to enhance the software experience. Devices like the ASUS ROG Ally and Lenovo Legion Go use standard Windows 11, benefiting from ongoing improvements, yet significant enhancements are still needed.
Future of Handheld Gaming and Microsoft’s Commitment
Microsoft’s handheld ambitions appear aimed at providing an optimal gaming experience, potentially capable of running full Xbox games. However, the company has chosen to prioritize partner opportunities with devices like Kennan—at least temporarily. Microsoft remains committed to eventually rolling out a native Xbox handheld but is currently reallocating resources without impacting workforce stability.
