Asus Plans 2025 Launch for Xbox Handheld, Collaborating with Microsoft to Integrate Windows and Xbox Libraries

Last year, Phil Spencer, the head of Microsoft Gaming, hinted that an Xbox handheld gaming device was not on the immediate horizon. But it seems other manufacturers might not be waiting around. According to insiders speaking to The Verge, Microsoft is on track to merge Xbox and Windows into a unified platform, with Asus stepping up as one of the first to jump on board. Asus is reportedly developing a device known as Project Kennan—a gaming handheld that could benefit from Microsoft’s ongoing efforts and might even see a release this year.

On the hardware front, Asus isn’t the only player involved. Microsoft is also crafting something called Project Bayside. This is a framework designed to standardize the Xbox experience across various devices, incorporating a version of Windows with an Xbox-themed interface. It appears that both these projects are part of Microsoft’s grand plan to blend the Xbox and Windows ecosystems seamlessly.

Earlier this year, Jason Ronal, who serves as the VP of Xbox gaming devices and ecosystem at Microsoft, revealed to The Verge that the company is heavily focused on this integration. Although there’s anticipation building around these developments, no official word or teaser has been released by Microsoft or Asus as of yet.

The handheld gaming landscape was revitalized by Valve with the launch of the Steam Deck in 2022. Yet, Microsoft currently holds an edge when it comes to options, as most of the top-rated PC gaming handhelds are running on Windows 11. However, the scene is shifting with Lenovo’s recent reveal of the Legion Go S, which will soon be available with SteamOS. Presently, the Windows 11 version is priced at $729, but starting in May, a more budget-friendly SteamOS version is expected to hit the shelves at just $499. Lenovo also plans to release a less expensive Windows variant around the same time at $599, but the $100 difference might be enough to sway gamers towards the SteamOS option.

All this is likely to have Microsoft’s attention, especially since a long-time partner like Lenovo is rolling out an alternative operating system in the form of SteamOS. With Microsoft already trying to keep up with the PlayStation 5 in the console arena, facing off against Valve in the handheld sector is a challenge it probably doesn’t want to underestimate. To maintain its market dominance, Microsoft will need to ensure that Xbox and Windows remain appealing choices for handheld gamers.