Microsoft Eyes Third-Party Xbox Handhelds

Microsoft Reportedly Changes Course on Xbox Handheld Strategy

Recent reports indicate Microsoft has adjusted its plans to develop a proprietary Xbox handheld gaming device. The company was allegedly targeting a late 2020s launch window, potentially aligned with its next-generation Xbox console. This reconsideration comes despite Xbox gaming chief Phil Spencer's previous confirmation that a first-party handheld was in development.

Windows 11 Gaming Becomes the New Focus

According to Windows Central's latest report, Microsoft's strategy has evolved to emphasize optimizing Windows 11 for third-party gaming handhelds. The company is reportedly collaborating with hardware partners like Asus on an Xbox-branded portable device (codenamed Project Kennan), with internal communications stating the team is now prioritizing third-party OEM solutions.

Leaked Images Reveal ASUS Collaboration

Earlier this month, purported images of ASUS' Xbox-branded handheld surfaced online through Indonesian certification documents. The leak showed two color variants of what appears to be the ROG Ally 2 - one in white and another in black. Windows Central suggests the hardware design is nearly complete, potentially featuring AMD's new Z2 Extreme processor.

While technical specifications remain unconfirmed, reports indicate prototype units are currently undergoing testing at Microsoft's headquarters. The leaked certification listing has since been removed from the U.S. FCC website.

Teasers Hint at Upcoming Reveal

ASUS' Republic of Gamers division recently teased their partnership through social media, showcasing what appears to be both an Xbox-branded controller and handheld device. The official Xbox account responded with an intriguing animated reaction, fueling speculation about an imminent official announcement.

Next-Gen Xbox Console Development Continues

Meanwhile, Microsoft's next-generation Xbox console project remains on track, with reports indicating full production has begun. Xbox president Sarah Bond recently confirmed the company is "advancing full speed ahead" on its next hardware release, promising "the most significant technological leap in console history."