Rumors Suggest Asus to Release Xbox Handheld in 2025 with Microsoft Collaboration to Integrate Windows and Xbox Libraries

Last year, Microsoft Gaming’s CEO, Phil Spencer, hinted that an Xbox gaming handheld might not be in the cards for quite some time. But don’t count out other tech giants just yet. Despite Microsoft’s current stance, some OEMs, with Microsoft’s blessing, are delving into the handheld gaming arena. Sources close to The Verge reveal that Microsoft is on a mission to mesh Xbox and Windows into one seamless platform. Riding this wave, Asus is reportedly on board as an initial partner, working on something exciting dubbed Project Kennan—a gaming handheld device that could hit the market soon, leveraging Microsoft’s groundbreaking unification efforts.

Asus isn’t just tinkering with hardware. On the software side, Microsoft is also busy crafting Project Bayside. This initiative aims to bring a consistent Xbox user interface across various gadgets. The device Asus is brewing will reportedly rely on a Windows foundation, adorned with an Xbox-style overlay. Kennan and Bayside together symbolize Microsoft’s strategic push to blend the finest elements of both Xbox and Windows environments.

Earlier this year, Jason Ronal, Xbox’s VP for gaming devices and ecosystems, told The Verge that the company is channeling its energy into this integration. He even hinted at progress before year’s end. However, we’re waiting with bated breath for any official word or even a morsel of a teaser from either party involved.

The handheld gaming scene got a massive jolt when Valve introduced the Steam Deck in 2022, sparking renewed interest in portable consoles. While Microsoft currently has the upper hand, given that many top-tier PC gaming portables run on Windows 11, the landscape might be shifting soon. Enter Lenovo with their Legion Go S, powered by SteamOS. The Windows 11 variant of the Legion Go S can be yours today for $729, but come May, the more budget-friendly SteamOS version will hit the shelves at $499. Lenovo is also planning a slightly more affordable Windows rendition of the Legion Go S, expected to be available at $599 around the same time. The price difference might steer gamers towards the SteamOS option.

These developments are surely catching Microsoft’s eye. With a trusted OEM partner like Lenovo opting for SteamOS, a noteworthy alternative is now vying for a slice of the handheld OS pie. This move illustrates that Valve is stepping up to challenge Windows with its SteamOS. While Microsoft wrestles to stack up against the PlayStation 5 in the console domain, it certainly doesn’t want Valve making significant inroads in the handheld market. Preserving its stronghold in this sector could mean ensuring that Xbox and Windows stay top choices for gamers on the go.