Rumors of a handheld Xbox console have resurfaced — but this time, with more weight behind them. A new report from The Verge sheds fresh light on Microsoft’s long-rumored handheld gaming device, revealing that Asus may be the company actually building it.
Codenamed ‘Project Kennan’
Sources familiar with Microsoft’s plans told The Verge that Microsoft internally refers to the device as Project Kennan and has partnered with Asus to manufacture it—the same company behind the ROG Ally. Although Microsoft has kept details under wraps, the company reportedly plans to feature Xbox branding on the handheld and aims to bridge the gap between console and PC gaming.
Powered by Windows and AMD Hardware
What sets this upcoming Xbox handheld apart from existing devices like the Steam Deck is its software approach. Microsoft is expected to run the console on a version of Windows, tailored with a more Xbox-like interface to make navigation easier for console gamers.
Under the hood, AMD reportedly powers the device with its Ryzen Z2 Go chip, allowing it to run modern games efficiently while conserving energy—a crucial feature for portable gaming.
Pricing and Launch Window
As for pricing, Microsoft is expected to price Project Kennan between $499 and $599, placing it in the same range as other high-end handhelds. While the company reportedly plans to launch it later this year, Project Kennan remains in active development, so the timeline could still change.
A Broader Strategy
Microsoft’s move to collaborate with Asus could be part of a larger strategy to bring more OEMs into the Xbox hardware ecosystem. Rather than developing a single in-house device, Microsoft might allow third-party partners to create Xbox-branded hardware, much like the Android model.
While the company hasn’t confirmed anything officially, it’s clear Microsoft is taking portable gaming more seriously than ever, and Project Kennan could be the first of several Xbox handhelds to come.
