Rumor: Asus Plans 2025 Xbox Handheld Launch Amid Collaboration with Microsoft to Integrate Windows and Xbox Libraries

Phil Spencer, the CEO of Microsoft Gaming, mentioned last year that an Xbox gaming handheld was not on the immediate horizon. Nonetheless, it appears other Original Equipment Manufacturers (OEMs) are exploring this territory with Microsoft’s blessing. Insights from The Verge suggest that Microsoft is working to merge Xbox and Windows into a single platform, and Asus is reportedly on board as a launch partner for this initiative. The buzz is that Asus is developing Project Kennan, a gaming handheld that might see the light of day this year, thanks to Microsoft’s ongoing endeavors.

While Asus is crafting the hardware, Microsoft is also busy with Project Bayside. This framework aims to standardize the Xbox user interface across multiple devices. Essentially, it integrates Xbox aesthetics on a Windows base, and it’s expected to be the driving force behind the upcoming Asus handheld. Both Kennan and Bayside reflect Microsoft’s ambition to blend the strengths of Xbox and Windows into a seamless experience.

Speaking to The Verge earlier this year, Jason Ronal, Vice President of Xbox gaming devices and ecosystem, emphasized the company’s dedication to this integration. There’s a level of anticipation for results by year’s end, although official details or teasers from Microsoft or Asus are still awaited.

Back in 2022, Valve revolutionized the handheld gaming scene with the Steam Deck, and Microsoft seemed to have an edge because many top PC gaming handhelds run on Windows 11. However, this could be shifting as Lenovo steps in with the Legion Go S powered by SteamOS. Currently available with Windows 11 at $729, Lenovo plans to release the SteamOS variant in May for just $499. They also intend to offer a cheaper Windows version for $599, potentially pushing gamers towards the more affordable SteamOS option.

No doubt, this competition would catch Microsoft’s eye, especially with a major OEM partner offering an alternative OS. Valve appears to be challenging Windows with its SteamOS, and while Microsoft is already in a neck-and-neck race with the PlayStation 5 in the console arena, it can’t afford similar competition in handhelds. It’s clear that if Microsoft wants to maintain its stake, it must ensure that Xbox and Windows remain the go-to platforms for handheld gaming.