Xbox handheld from Microsoft isn’t happening soon—ASUS to the rescue?

Xbox handheld rumors won’t stop. Maybe there’s something to them.

Xbox / Image Credit: AFP, Getty Images

So, Xbox might be jumping into the handheld scene! But hold up—why now? Japan’s the home of major gaming companies and still leads in cool hybrid systems. Sony and Nintendo often tailor their handhelds for Japan first, then tweak them for the West.

In 2022, a survey found that 22.7% of people in Japan used handheld consoles. But here’s the kicker—the number has dropped for 2 years straight. Meanwhile, the US snagged a huge 78.2% of the handheld market in 2024. Maybe that’s Microsoft’s cue to roll out an Xbox handheld?

First off, what’s an Xbox handheld anyway? Picture a PC gaming gadget—like ASUS or Lenovo stuff—with Xbox flair. And trust me, there’s some fun twists ahead.

Microsoft Xbox handheld

Tired of news bugging you about Xbox hardware rumors? I get it. They say a gaming handheld drops late 2025. Then full next-gen consoles hit in 2027. But wait—didn’t Phil Spencer, Microsoft’s Gaming CEO, mention last November that a handheld’s still way off? It’s only a prototype now.

Luckily, Tom Warren from The Verge shares some insights. Microsoft is reportedly focusing on uniting Windows and Xbox this year. The goal? A massive library of Xbox and PC games for seamless access. Sounds promising, right?

I love Xbox’s power—the UI flows nicely too. The games, though? Kinda meh. Microsoft hasn’t dropped many Xbox-only titles lately. My PC picks up the slack for crossovers. I still snag those exclusives. It’s tougher for Xbox-only folks, but Microsoft’s big plan might fix that.

Oh, and Warren cleared up the codename—it’s Project Kennan, not Keenan. Word is, ASUS builds this handheld. It ties into Microsoft’s push for a unified Xbox-PC game library.

ASUS Xbox handheld

Since ASUS handles the hardware, the device might look a bit like the ROG Ally crew.

ASUS already rocks a couple of handhelds: the ROG Ally and the ROG Ally X. The ROG Ally wins on style, portability, and comfort for long gaming sessions thanks to its lighter weight. Meanwhile, the Ally X cranks up the speed and power, letting you play more games for way longer.

ASUS really pours effort into perfecting these handhelds. Still, I’ve heard from some ROG Ally X owners that the Windows UI can get clunky. It’s not a constant headache, though. Once you’re in a game with good controller support, you can roll for hours without touching Windows. Microsoft’s teaming up with ASUS to smooth out the UI anyway.

Games should come from one store, with a chill Xbox-like setup. Chatter suggests pricing might hit $499 to $599. That could mean it’s not as beefy as the ROG Ally or Ally X. Those two boast the AMD Z1 Extreme.

Next-gen Xbox console

Reports claim Microsoft is dropping a fancy Xbox Series X upgrade by 2027. The next-gen console could feel way more PC-like. Those Kennan and Bayside projects might hint at how the software side shapes up.

Think about it—if Microsoft blends Xbox and PC vibes into one hybrid system, the Xbox could basically become a living room PC. Sure, it’s tricky, but the SteamDeck already nailed this balance. Microsoft’s been lagging behind PlayStation sales, but leaning into PC-like hardware might help them catch up.

But wait—would a PC-style Xbox bum people out? For me, backward compatibility is everything. I love firing up ’90s classics without the hassle of tweaking settings on a PC. If Xbox starts running full Windows, goodbye closed ecosystem—hello pricier hardware, which could push budget gamers toward cheaper options.

Consoles exist to keep things simple: plug in, grab a controller, and play. No keyboards, no fuss. As long as my Xbox stays a couch-friendly, no-nonsense machine, I’m happy. Let’s hope Microsoft doesn’t overcomplicate the magic.

Parting thoughts

I’m stoked about Xbox possibly dropping a handheld—imagine gaming on the go with that slick Xbox style. With Japan’s handheld scene cooling off and the US dominating the market, it feels like Microsoft’s picking the perfect time to jump in.

I’m picturing a device that mixes PC power with Xbox’s smooth UI. As long as they keep it simple and loaded with games I love, I’m all in for this ride!