Summary
- Microsoft puts Xbox handheld plans on hold to focus on Windows 11 PC gaming optimization.
- Despite internal shift in priorities, Microsoft is still investing in developing own Xbox portable.
- Sony also reportedly working on PS5 handheld to rival Nintendo Switch, but years away.
Previously, the head of Xbox, Phil Spencer, admitted that they were developing a handheld gaming gadget. Lately, whispers about the portable Xbox have emerged, hinting at its potential launch in the current year.
Should that piqued your interest, be aware that it might lose some of its luster, given the news that Microsoft’s focus has changed, potentially delaying the launch of their handheld console, the Xbox.
Xbox Handheld Plans On Hold as MS Wants To Focus On Windows 11 PC Gaming Handheld Optimization

According to Microsoft insider Jez Corden, there’s no plan to scrap Microsoft’s portable Xbox project. Instead, the company is delaying its progression as they focus on enhancing the gaming performance of Windows 11 on portable devices similar to ASUS’ “Project Kennan”.
According to Corden’s sources, Microsoft is continuing to heavily focus on creating their own portable gaming device based on Xbox in the long term. However, it was recently decided internally that the immediate focus will be on partnering with third-party manufacturers for handheld devices at this time.
For those not in the know, Project Kenna refers to a handheld gaming device that Microsoft is creating with ASUS, codenamed as such. We previously shared news about this device last month, and it’s anticipated for release by the end of this year. Although the hardware has been completed, the software aspect is still undergoing adjustments.
According to the latest update from Corden, there’s no more uncertainty about what Microsoft’s portable gaming gadget actually is.
The rumor about Microsoft’s upcoming handheld device for Xbox isn’t suggesting it as a portable PC for running Windows 11 games anywhere, instead, it’s being designed specifically to operate full Xbox games. Microsoft is reportedly aiming high and investing substantially to create a native portable Xbox device. At the moment, they are focusing on this project, but there’s no news about job cuts or similar issues within the company due to this change in direction.
Until Microsoft officially confirms it, consider the details as tentative, given that such topics typically remain undisclosed and not open to public discussion.
Reports indicate that it isn’t only Microsoft who’s interested in developing a standalone portable gaming device; Sony is also rumored to be crafting a handheld version of the PS5, aiming to compete with Nintendo’s Switch. However, this potential product is still a few years from hitting the market.
Considering Nintendo’s thriving handheld gaming sector, it’s understandable that Microsoft and Sony are eyeing a share of this lucrative market. Although neither company has publicly declared their intentions regarding portable gaming, the upcoming release of the Nintendo Switch 2 in just a week is bound to shatter existing sales records for Nintendo.
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2025-05-30 03:10