Summary
Xbox’s upcoming handheld console will reportedly be made through a cooperative partnership with Asus, according to a new report. The maker of the ROG Ally handheld gaming computer may be cooperating with Microsoft’sXboxbrand to get the rumored console into the hands of players, though reports vary on how soon that will happen.
After years of circulating rumors, the development of anXbox handheld was confirmed by Phil Spencer, CEO of Microsoft Gaming, back in November 2024. Early reports from that time stated that a prototype was in the works and that Spencer wasn’t just considering the development of the handheld console itself, but how Xbox would be able to compete in an already crowded handheld gaming market.
A new set ofdetails on Xbox’s handheld consoleemerged just a few days ago, including Xbox’s collaboration with an unknown manufacturing company to bring its project to light. Now, a new report from Tom Warren ofThe Vergesuggests that Asus is that company, and that both it and Microsoft would like to have their product in gamers' hands before the end of 2025. However, Warren is showing some doubt over the information he received about the release date, which has not been made official in any capacity. Other sources predict that it could take until 2027 before such a device hits the market alongside Xbox’s next-gen console.
Xbox Handheld Will Be Made in Part by Asus
According to the new report, the partnership with Asus will help with the “unification of Windows and Xbox,” asbringing the best of Xbox and Windows togetheris a major goal for both companies. The device itself is reportedly being developed under the code name Project Kennan while the platforming work is being referred to as Project Bayside. In collaboration, the projects will reportedly allow for a single user interface and experience platform that will offer an expanded catalog of games that can be accessed by an owner’s PC, handheld, and traditional console device.
Despite Spencer’s reports that Xbox is developing a plan for the market viability of the upcoming handheld console, it faces a lot of competition, even with support from Asus. A report on competitorSteam Deck’s salesreleased in late February showed it dominating the current handheld gaming PC market, with somewhere between 3.7 million and 4 million units sold between 2022 and 2024. Taking the higher end of that estimate into consideration, that’s roughly double the number of combined sales of all other handheld gaming PCs sold in the same timeframe, including the Asus ROG Ally. Still, compared to the three-year period since its worldwide launch in 2012, the PlayStation Vita outsold the Steam Deck about three-to-one, so there could be something to be said for a branded console name on a handheld gaming device.
