Xbox Handheld Reportedly Being Put on Hold

by

Summary

  • Microsoft is postponing the release of their Xbox handheld to focus on enhancing gaming performance on Windows 11 devices.
  • Xbox is still working with ASUS for a handheld project named Project Kennan, which is still in progress and planned to launch by end of 2025.
  • Despite the delay in the Xbox handheld, Microsoft continues to invest in developing their own gaming handheld with finished hardware.

It’s rumored that Microsoft’s forthcoming portable Xbox console is being delayed, as the company focuses more on enhancing gaming capabilities for Windows 11 devices instead. Earlier reports suggested a 2027 release for this new portable Xbox, which was expected to hit stores only two years after the anticipated launch of competing handhelds such as the Nintendo Switch 2.

Ever since whispers about the upcoming Xbox portable gaming device have been swirling around for a while now, it’s no secret that Phil Spencer confirmed back in 2024 that such a device was under development. However, he didn’t spill any beans about the console details at that time. The rumors continued to buzz in 2025, with talk of an Xbox handheld manufactured by ASUS being set for release by year-end.

But let me clarify one thing: this collaborative portable gaming device from Xbox and ASUS isn’t the same as the standalone Xbox handheld that’s been brewing behind closed doors. Xbox has reportedly been working on its own native portable console, which will be joining forces with the successor to the Xbox Series X when they hit the market in 2027, initially at least. However, it seems like the plans for this new portable gaming device have experienced some adjustments along the way.

The report indicates that Microsoft is temporarily pausing its plan to create the upcoming Xbox handheld, focusing instead on enhancing gaming capabilities within Windows 11. The company aims to tailor Windows 11 for devices such as Project Kuiper (codename for the collaborative effort between Xbox and ASUS on a new handheld). As Microsoft’s focus turns towards third-party OEM handhelds, it is not abandoning its aspirations for an in-house gaming handheld. The hardware for this system has reportedly been completed, but there will be intense collaboration between the Xbox and Windows teams to refine software like Xbox layers and apps on Windows 11.

Xbox Reportedly Puts Native Handheld on Hold and Shifts Focus to Improving Windows 11 Gaming Performance

  • The new Xbox and ASUS handheld, codenamed Project Kennan, launches by end of 2025 and is unaffected by Microsoft’s decision.
  • Xbox Series X successor is still planned for 2027.

According to a recent report, Microsoft has not conducted any layoffs due to their restructuring efforts. Instead, they have redirected their resources towards the Xbox and Windows teams for collaborative projects like Project Kennan. Additionally, the release of the upcoming Xbox console, expected to replace the Xbox Series X, is still scheduled for 2027, with development progressing full speed ahead. Interestingly, it has been reported that Xbox is also considering bringing games to the Nintendo Switch 2, which is set to launch on June 5 as the next-generation handheld from Nintendo.

Microsoft is also developing the next generation of its Xbox cloud systems, with testing currently taking place at their headquarters in Redmond. This potential platform may challenge NVIDIA’s GeForce Now service and provide exceptionally low latency for gaming. In the past, Microsoft had been working on Project Hobart – a cloud-focused mini console that was ultimately scrapped, contributing to their overall cloud gaming strategy.

Read More

2025-05-30 03:07