Microsoft Shifts Focus From Xbox Handheld to Third-Party Devices

Microsoft Reportedly Shifts Focus From In-House Xbox Handheld Development

Recent reports indicate Microsoft has scaled back plans for its proprietary Xbox handheld console. The company was allegedly targeting a 2027 release window aligned with its next-gen Xbox launch, though Xbox chief Phil Spencer recently suggested Microsoft's first-party handheld remained "years away."

Windows Central now reports Microsoft's priorities have "shifted" toward enhancing Windows 11 gaming optimization for third-party devices. The company is currently collaborating with hardware partners like Asus on Project Kennan - an Xbox-branded handheld. Internal communications reportedly emphasized focusing "more deeply towards third-party OEM handhelds in the interim."

Xbox Games Series Tier List

Xbox Games Series Tier List

Leaked images surfaced earlier this month showing Asus' Xbox-branded handheld prototypes. Two color variants (white and black) of the ROG Ally 2 appeared via Indonesian certifications linked to since-removed FCC filings. Windows Central notes the hardware design appears finalized, potentially featuring AMD's upcoming Z2 Extreme chipset.

While detailed specifications remain unclear, leaks suggest Microsoft is actively testing prototypes at its headquarters. The absence of visible hardware differences between color options suggests potential cosmetic variations only.

Asus' Republic of Gamers division recently teased the partnership via social media, showcasing glimpses of both Xbox-branded controllers and handheld devices. Xbox's official response — an intrigued reaction gif — hinted at imminent official announcements.

This strategic pivot coincides with Microsoft accelerating development of its next-gen Xbox console. Company president Sarah Bond confirmed the team is "moving full speed ahead" to deliver what promises to be "the biggest technological leap ever in a generation," with anticipated release within two years.