New reports suggest Microsoft has scaled back plans to develop its own dedicated Xbox handheld console.
The company was initially rumored to be targeting a 2027 launch for its own handheld device, potentially aligned with the next generation of Xbox. Microsoft Gaming CEO Phil Spencer recently indicated that a first-party Xbox handheld was still several years away from reality.
However, a new Windows Central report now claims Microsoft's internal priorities have "shifted." Instead, the team is now concentrating on enhancing the Windows 11 gaming experience for third-party handhelds, collaborating with partners like Asus on an Xbox-branded device, internally known as Project Kennan. According to the report, internal staff were informed that "priorities are moving more deeply towards third-party OEM handhelds in the interim."
Xbox Games Series Tier List
Xbox Games Series Tier List
Images of Asus' upcoming Xbox-branded handheld surfaced online earlier this month. Two photos of the Asus ROG Ally 2 device—one in white, the other in black—appeared through the Indonesian certification office, which referenced a (now-removed) listing on the U.S. FCC website. Notably, the Windows Central report adds that "the hardware side is essentially finished," with the device expected to be among the first to utilize the AMD Z2 Extreme processor.
Technical specifications remain somewhat limited at this stage, making it unclear exactly how the device will perform or whether there are meaningful differences between the black and white models. Rumors suggest the units are "currently being tested quite openly at Microsoft HQ as we speak."
Last month, the Asus Republic of Gamers X/Twitter account shared a teaser briefly showing both a Republic of Gamers (ROG) Xbox controller and a handheld system. The official Xbox account responded to the tweet with a playful wide-eyed GIF, hinting that an official announcement may be imminent.
The successor to the Xbox Series X is reportedly now "fully" in production and set for release within two years, aligning with Xbox president Sarah Bond's recent statement that Microsoft is "moving full speed ahead on our next-generation hardware, aimed at delivering the largest technological leap ever seen in a console generation."
