Asus Set to Release Xbox Handheld in 2025: Collaborating with Microsoft for Unified Windows and Xbox Libraries

Towards the end of last year, Phil Spencer, the CEO of Microsoft Gaming, hinted that an Xbox gaming handheld wasn’t exactly around the corner. But don’t be too quick to dismiss the idea altogether. Even though Microsoft might not be diving in yet, other original equipment manufacturers (OEMs) seem eager to take the plunge—with Microsoft’s blessing, of course. Sources from The Verge reveal that Microsoft is in the midst of merging Xbox and Windows into one seamless platform. And leading this charge is none other than Asus, working on an endeavor known as Project Kennan. This codename refers to a gaming handheld poised to harness Microsoft’s ongoing platform unification, potentially making its debut later this year.

Microsoft isn’t just a spectator in this hardware venture. They’re also diligently crafting Project Bayside, a framework designed to bring a consistent Xbox user interface across all devices. The handheld from Asus will run on this system, essentially Windows with Xbox’s flair. This dance between Projects Kennan and Bayside exemplifies Microsoft’s ambition to marry Xbox’s and Windows’ finest qualities.

In a conversation with The Verge, Jason Ronal, who heads Xbox gaming devices and ecosystems, emphasized how the focus is squarely on this integration endeavor. He anticipates this effort will bear fruit before the year is out. Yet, despite all the buzz, there hasn’t been an official word—or even a teaser—from either Microsoft or its collaborators.

Wind the clock back to 2022, and you’ll recall the splash Valve made with the Steam Deck, revitalizing handheld gaming consoles. Microsoft, meanwhile, enjoys a leg up thanks to Windows 11, which powers the majority of top-tier PC gaming handhelds. But hold on, Lenovo is shaking things up with its recent announcement of the Legion Go S, pushing boundaries with SteamOS. Available now for $729, there’s also a SteamOS version on the horizon in May, priced attractively at $499. And to keep things competitive, Lenovo has also floated a more budget-friendly Windows variant, expected to retail for $599 around the same time. The slimmer price difference might make the SteamOS option more tempting for gamers.

This move certainly hasn’t slipped under Microsoft’s radar, especially with one of their stalwart partners flirtatiously eyeing SteamOS. It reflects a growing face-off between Valve, with its SteamOS, and Microsoft’s own offerings. Already feeling the heat from PlayStation 5 in the console world, Microsoft is unlikely to stand by idly as Valve makes moves in the handheld arena. To retain their stronghold, ensuring that Xbox and Windows continue to be the go-to operating systems in handheld gaming is critical.