Asus and Microsoft Collaborate on Xbox Handheld Launch for 2025 to ‘Unify’ Windows and Xbox Libraries

Microsoft Gaming’s head honcho, Phil Spencer, had mentioned last year that an Xbox handheld console was still quite a ways off. But just because Microsoft’s taking its time doesn’t mean other OEMs have put things on pause. Intel from The Verge whispers that Microsoft is aiming to blend Xbox and Windows into a single cohesive platform, with Asus right there at the forefront. They’re working on what’s called Project Kennan, a gaming handheld expected to benefit from Microsoft’s integration efforts, potentially hitting the shelves this year.

Now, while Asus is engineering this intriguing piece of hardware, Microsoft has its own irons in the fire with something called Project Bayside. This is all about creating a consistent Xbox user experience across various devices. The handheld Asus is crafting will sport this familiar Xbox interface, though it’s all draped over a Windows base. Both Project Kennan and Project Bayside are integral to Microsoft’s vision of melding the best of Xbox and Windows into a seamless ecosystem.

In an earlier chat with The Verge, Jason Ronal, who steers Xbox’s gaming devices and ecosystem, commented on this tight integration, hinting at some exciting outcomes by year’s end. Still, while the gossip mill is spinning furiously, there hasn’t been any firm confirmation or even a sly teaser from either Microsoft or Asus to satisfy our curiosity.

The handheld gaming arena was given quite the jolt with Valve’s introduction of the Steam Deck back in 2022. Yet, Microsoft holds a lead with its range of Windows 11-powered PC gaming handheld devices. That said, Lenovo’s stirring the waters with its Legion Go S, driven by SteamOS. Right now, you can snag the Windows 11 version for $729, while the SteamOS counterpart, set for a May launch, will be considerably lighter on the wallet at $499. Lenovo is also gearing up to launch a cheaper Windows-based Legion Go S around the same period, pricing in at $599. This $100 difference might nudge many gamers towards the SteamOS option.

This maneuver from Lenovo is likely to make Microsoft’s ears perk up, especially since it’s one of their major longstanding partners rolling out a popular alternative OS this May. Valve seems to be muscling into Windows territory with SteamOS, and given Microsoft’s uphill battle with the PlayStation 5 in the console domain, they’re probably not keen on a similar face-off with Valve over handheld consoles. To maintain its turf, Microsoft will need to ensure that Xbox and Windows continue being the go-to systems for gaming handhelds.