Rumors about a portable Xbox gaming console have been swirling for years. Last November, Microsoft Gaming CEO Phil Spencer confirmed that the company was working on a handheld Xbox device. Additionally, Xbox Gaming Devices VP Jason Ronald previously hinted at plans to bring the best of console and PC gaming together. Now, a new report from The Verge suggests that Microsoft’s upcoming Xbox handheld, codenamed Project Kennan, will be manufactured by ASUS.
ASUS to Build Microsoft’s Xbox Handheld

According to sources familiar with Microsoft’s plans, Project Kennan will carry Xbox branding and is expected to launch later this year. However, the report mentions that the project is still in development, meaning the launch window could shift. Unlike traditional Xbox consoles, this handheld device will run Windows, but with a more streamlined Xbox-focused interface, potentially offering a more console-like experience similar to the ASUS ROG Ally’s Armoury Crate software.

Project Kennan is rumored to be powered by AMD’s Ryzen Z2 Go chip, which would put it in direct competition with other handheld gaming PCs like the Steam Deck and ASUS ROG Ally. As for pricing, Microsoft is reportedly targeting a range between $499 and $599, making it a premium handheld gaming option.
Pokdepinion: Microsoft’s goal appears to be unifying Windows and Xbox while forming partnerships with third-party manufacturers to develop Xbox-branded gaming hardware. If these rumors hold true, ASUS could be just the first OEM to create an official Xbox handheld, paving the way for more devices in the future. Hopefully, we might see a certain blue rival due something similar as a result.