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Microsoft Shifts Focus: No Xbox Handheld Yet, But Exciting Developments Ahead!

5/31/2025
After much anticipation, Microsoft has shifted its focus away from developing an Xbox-branded handheld device. Instead, efforts are now on enhancing Windows 11 for existing gaming handhelds and preparing for a third-party console launch in 2025.
Microsoft Shifts Focus: No Xbox Handheld Yet, But Exciting Developments Ahead!
Microsoft is prioritizing Windows 11 performance over an Xbox handheld. Fans may have to wait, but a third-party console with ASUS is set for 2025!

Microsoft’s Xbox Handheld: An Update on Development Plans

For years, gaming enthusiasts, including Engadget’s own Sam Rutherford, have been eagerly asking Microsoft to introduce an Xbox-branded handheld gaming device. There was a time when it seemed that such a device could become a reality in the near future. However, recent reports indicate that Microsoft’s focus has shifted towards enhancing the performance of Windows 11 on existing third-party PC gaming handhelds.

Shifting Priorities at Microsoft

According to an exclusive report by Windows Central, Microsoft is currently prioritizing improvements to the user experience of Windows 11 rather than developing a dedicated Xbox handheld system. Initially, there were plans for a handheld device that was expected to launch in 2027, coinciding with the anticipated successor to the Xbox Series X. However, this project is not the main focus for the company at this time, despite their ongoing interest in the idea.

The Status of Xbox Handheld Development

Jez Corden from Windows Central has revealed that although various codenames for an internally developed handheld device have circulated, no active development is currently taking place. It's important to note that this strategic shift has not resulted in any layoffs within the company, ensuring that the workforce remains intact during this transition.

Microsoft's Continued Presence in the Handheld Market

While the prospect of a native Xbox handheld may be delayed, Microsoft is not stepping back from the handheld gaming market. The company is still collaborating with ASUS on a third-party console, codenamed Project Kennan, which is aimed for a launch in 2025. This upcoming device is expected to feature AMD’s Z2 Extreme chip and will provide an enhanced Windows 11 experience that is optimized for a controller interface.

Looking Ahead: The Future of Xbox Handhelds

While the dream of an Xbox-branded handheld may not materialize in the immediate future, Microsoft's focus on improving the existing gaming ecosystem shows their commitment to providing gamers with a quality experience. As developments unfold, fans will be keenly watching for updates on both Project Kennan and the potential for future Xbox handheld systems.

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