Microsoft has reportedly scaled back development of its own Xbox handheld console.
Initial plans suggested Microsoft would launch its own handheld device around 2027, potentially alongside its next-generation Xbox. Microsoft Gaming CEO Phil Spencer recently indicated that a first-party Xbox handheld was still years away.
However, a new report from Windows Central claims Microsoft's priorities have "shifted," with the team now focusing on enhancing Windows 11 gaming performance for third-party devices. They are collaborating with partners like Asus on an Xbox-branded handheld, codenamed Project Kennan. According to the report, internal communications stated that "priorities are shifting more toward third-party OEM handhelds for the time being."
Xbox Games Series Tier List
Xbox Games Series Tier List
Images of Asus' Xbox-branded handheld device appeared online earlier this month. Two photos of the Asus ROG Ally 2—one white, one black—were made public through the Indonesian certification office, which linked to a (now removed) listing on the U.S. FCC website. Interestingly, Windows Central's report adds that "the hardware side is essentially complete," and it is believed to be among the first devices to feature the AMD Z2 Extreme processor.
Current technical specifications are somewhat limited, so it's not entirely clear how the device will perform or whether there are significant differences between the black and white models. Rumors suggest the devices are "currently being openly tested at Microsoft HQ as we speak."
Last month, Asus Republic of Gamers' X/Twitter account shared a teaser offering a quick look at both a Republic of Gamers (ROG) Xbox controller and a handheld system. The official Xbox account responded to the tweet with a wide-eyed GIF, hinting at an upcoming official announcement.
The successor to the Xbox Series X is reportedly "fully" in production and set to launch in two years, aligning with Xbox president Sarah Bond's recent statement that Microsoft was "moving full speed ahead on our next-generation hardware, aiming to deliver the most significant technological leap in a generation."
