Asus Plans 2025 Launch for Xbox Handheld, Collaborates with Microsoft to Integrate Windows and Xbox Libraries

Late last year, Phil Spencer, the CEO of Microsoft Gaming, suggested that an Xbox gaming handheld wouldn’t be on the horizon for quite some time. Nevertheless, this hasn’t deterred other manufacturers from exploring the concept, with Microsoft’s blessing. According to insider information from The Verge, Microsoft is in the process of merging Xbox and Windows into a unified platform, with Asus stepping up as one of its key partners in this endeavor. In an exciting twist, Asus is reportedly working on “Project Kennan” — the code name for their gaming handheld, which could hit the market within the year, taking a cue from Microsoft’s ambitious goals.

While Asus tackles the hardware side, Microsoft is busy developing “Project Bayside.” This project aims to create a standard Xbox user interface that can seamlessly operate across various devices. Essentially, it’s Windows at its core, dressed up in an Xbox theme. Both Project Kennan and Bayside are central to Microsoft’s strategy of blending Xbox and Windows’ strengths into a cohesive experience.

Earlier this year, Jason Ronald, the Vice President of Xbox gaming devices and ecosystem, shared insights with The Verge, indicating that the company is concentrating significant efforts on this integration. With hopes pinned on tangible results later this year, enthusiasts eagerly await confirmation — or even just a teaser — from either Microsoft or Asus.

When the Steam Deck emerged in 2022, it breathed new life into the world of handheld gaming consoles. Yet, Microsoft still holds an edge when it comes to options, as most top-tier PC gaming handhelds have run on Windows 11. However, Lenovo’s announcement of the Legion Go S, which plans to utilize SteamOS, could shift the landscape. The current Windows 11 version of the Legion Go S is available at $729, but the upcoming SteamOS model, debuting in May, will be more wallet-friendly at $499. Lenovo also plans a price drop for the Windows variant, bringing it down to $599, though that $100 gap may lure many gamers to the SteamOS option.

This move would undoubtedly raise eyebrows at Microsoft, especially given that a major partner is opting for an alternative operating system like SteamOS. Valve is now poised to challenge Windows’ dominance in handheld gaming. With Microsoft’s ongoing battles against PlayStation 5 in the console market, they are unlikely to welcome another contender like Valve and its SteamOS. To maintain their standing, Microsoft must strategize to keep Xbox and Windows as the go-to choices for handheld gaming enthusiasts.