Microsoft reportedly still plans to create a handheld Xbox device, but has put production on hold to improve performance first.
On March 10, Jez Corden of Windows Central claimed that an Xbox-branded handheld was scheduled to launch later in 2025. Microsoft reportedly worked with Original Equipment Manufacturer to produce the device under the codename “keenan.”
The report expected the handheld system to include the Microsoft Store, PC Game Pass, and the ability to install Steam. Additionally, Microsoft is also rumored to be working on its own first-party handheld device, targeting a 2027 release, alongside the 2027 console. That development reportedly has been put on hold.
Xbox Handheld Console “Sidelined”
Following up on his earlier reporting, Window Central’s Jez Cordon claimed, “Microsoft still wants to build its own Xbox handheld in the future, but Microsoft has decided to prioritize its teams to improve Windows 11 gaming performance, specifically for devices like the ASUS partner device Project Keenan.”
“We understand that Kennan is targeting a launch for later this year. The hardware side is essentially finished, but there’s a significant effort between the Xbox and Windows teams to improve the experience on the software side.”
It’s unclear how much of a gulf there is between what Microsoft wants from the final product. In saying that, Corden believes that production for the Xbox Series X successor is still on track, and as of now, there haven’t been any layoffs as a result of this shift of focus.
In other gaming news, the Nintendo Switch 2 start-up screen has leaked, Clash is the latest new game mode in Warzone, and Activision is hiding player levels in Black Ops 6 lobbies.
Do you have faith that Microsoft will eventually create this system? Let us know on the Insider Gaming Forums.
