The handheld gaming market is heating up with competitors like the Nintendo Switch 2, Steam Deck, and various portable PC devices gaining traction. Rumors of a PlayStation handheld also swirl, but Microsoft’s rumored Xbox handheld seems to be facing delays.
Xbox Handheld Development Paused
According to Windows Central, Microsoft has paused development on its anticipated Xbox handheld, originally expected to launch in late 2025. The console had generated buzz for months, including a teaser from Microsoft Gaming chief Phil Spencer.
Instead, Microsoft is concentrating on enhancing Windows 11’s gaming performance on third-party handheld devices. Asus, reportedly working on a Windows 11-powered handheld codenamed “Project Kennan,” is a key partner in this effort.
SteamOS Gains Ground
Meanwhile, SteamOS continues to expand its presence beyond the Steam Deck. Recently, the Lenovo Legion Go S became the first third-party console running SteamOS, and the software is now available on devices like the Asus ROG Ally, which has received updates improving battery life and processing power — developments that may challenge Microsoft’s platform.
The Asus handheld aims for a 2025 release, and Microsoft may revisit its own Xbox handheld plans depending on that device’s success. Additionally, Windows Central reports that Microsoft’s development of an Xbox Series X successor is ongoing, targeting a 2027 launch.
What The Author Thinks
Microsoft’s decision to pause its handheld ambitions in favor of optimizing Windows 11 gaming on third-party devices shows smart strategic patience. Rather than rushing a proprietary device into a crowded market, focusing on the platform’s stability and performance could provide a stronger foundation. This approach may ultimately deliver a more competitive Xbox handheld experience when the time is right.
Featured image credit: Wikimedia Commons
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