Summary
- Microsoft delays Xbox handheld plans to improve Windows 11 gaming performance on devices like ASUS’ Project Kennan.
- Despite the pause, Microsoft is still developing its own native Xbox portable device.
- The Xbox Series X successor is still planned for 2027, alongside next-gen cloud gaming systems.
Xbox Handheld Plans On Hold, Microsoft Shifts Focus
Recent reports confirm Microsoft has put its in-house Xbox handheld project on hold. While Xbox boss Phil Spencer previously confirmed they were working on a portable, the company now prioritizes enhancing Windows 11 gaming.
This shift mainly supports third-party projects like ASUS’ Project Kennan, which remains set for launch by the end of 2025.
Leaker Jez Corden explained that although Microsoft is allocating resources away from its own portable, the company still has “big ambitions” for a native Xbox handheld. Importantly, no layoffs are reported as part of this decision. Instead, the software side of these devices is receiving extra focus, ensuring a smoother gaming experience on portable PCs running Windows 11.
What Comes Next?
Project Kennan, the Xbox-ASUS handheld collaboration, remains on track for a late 2025 launch, while Microsoft’s full Xbox handheld is likely pushed beyond 2027. Meanwhile, the next-generation Xbox console is still in active development, alongside testing for next-gen cloud gaming systems that could rival services like NVIDIA’s GeForce Now.
As both Sony and Microsoft watch Nintendo’s dominance with the Switch 2 (launching June 5), the pressure builds to deliver strong portable gaming experiences in the coming years. For now, fans will have to wait a bit longer for Microsoft’s direct handheld entry.
