Microsoft Reportedly “Sidelined” Xbox Handled To Focus On Third-Party Devices
Written by djfrosty on May 30, 2025
For those eager to get their hands on an Xbox dedicated handheld device, you’ll have to wait a bit longer.
Xbox chief Phil Spencer hasn’t been tight-lipped about the long-rumored Xbox handheld, speaking about the device as far back as 2017 when he claimed that Microsoft had “roughly designed” one in the past, while bringing up the device in numerous discussions that hint at its continued development.
Windows Central then threw more fuel on the fire when it reported on Microsoft’s strategy, which will see the company not only team up with a third-party on an Xbox-branded portable PC codenamed “Kennan” but also continue to work on its device, launching alongside the successor to the Xbox Series X/S in 2027.
Now, the website reports that Microsoft has “sidelined” the device as part of a strategy shift.
Per Eurogamer:
Now, though, Windows Central claims Microsoft has had a bit of a strategic rethink, and development of its own handheld device has been “sidelined”. According to the publication’s source, the company has internally announced it’ll instead “prioritise its teams to improve Windows 11 gaming performance, specifically for devices like the ASUS partner device Project Kennan” (NB. the site originally reported this under the name “Keenan” back in March, but has since updated its original story). It doesn’t sound like Microsoft is completely abandoning its own handheld plans, however; Windows Central says the company “still has big ambitions and is investing heavily to deliver a native Xbox handheld”, but third-party devices and Windows 11 improvements will be where it focuses its resources for now.
Project Kenna Is Still Coming
Windows Central reports that Project Kennan is “essentially finished” in terms of hardware, with the software component receiving a “significantly boosted effort” from Microsoft’s Xbox and Windows teams to “improve the experience on the software side.”
The plan to launch the Xbox-branded ASUS device sometime “later this year” is still on the table.