Microsoft is taking a new step to gain more space in the portable gaming market. It has long been rumored that the company would enter this market, which is growing with devices such as the Nintendo Switch and Steam Deck, with an Xbox-branded handheld console. Recent leaks indicate that Microsoft has partnered with Asus in this project.
Xbox is developing a new generation handheld console
Asus will play an important role in the development of the first portable Xbox-branded game console. It had previously been suggested that Microsoft was working with OEM partners to develop a portable Xbox device. Recent leaks indicate that a model codenamed “Kennan” is on the way.

Microsoft’s strategy for portable consoles has been on the agenda for a while. The company is adopting a new approach to make the Xbox and Windows ecosystems more integrated. In line with this, it was stated that Windows will be updated with a user interface optimized for handheld consoles.
Microsoft has previously partnered with portable gaming devices and introduced devices such as the Lenovo Legion Go, ASUS ROG Ally and Logitech G Cloud to the market with Xbox Game Pass Ultimate support. Xbox Gaming CEO Phil Spencer recently confirmed in an interview that the company is working on various device prototypes, but said that it could take a few years for these hardware to be released.
It is claimed that the model, codenamed “Kennan,” could be released in 2025. Although Microsoft has not made an official statement on the subject, it is already a matter of curiosity how the new device, which will be developed in partnership with Asus, will affect the portable gaming market.