ASUS is reportedly playing a significant role in the development of the Xbox handheld gaming device, which is expected to launch later in 2025. According to recent reports, ASUS is the mystery OEM partner that Microsoft has chosen to collaborate with on this project. The device, codenamed Project Kennan, is part of Microsoft's broader strategy to unify Windows and Xbox platforms, aiming to create a single library of games accessible across PC, handheld, and traditional console devices[2][4][7].
The Xbox handheld will likely run an optimized version of Windows 11, providing a console-like interface despite being powered by a PC operating system. This approach aligns with Microsoft's goal to bring the best elements of Xbox to PC handhelds, as stated by Jason Ronald, Vice President of Xbox Gaming Devices & Ecosystem[2][5]. ASUS's involvement is crucial due to its experience with handheld gaming PCs, particularly the ROG Ally series, which has been successful in the market[4][6].
While Microsoft is working on its own proprietary handheld for a later release, possibly in 2027, the 2025 device developed with ASUS serves as a precursor to these future plans. It will feature Xbox branding, including the iconic green highlights and an Xbox Guide button, ensuring it looks unmistakably like an Xbox product[1][3][10]. The partnership with ASUS is seen as a strategic move to leverage their expertise in handheld gaming technology while advancing Microsoft's unified gaming ecosystem vision[2][4].
However, there are some uncertainties regarding the exact release timeline, with some sources suggesting that the launch might be delayed until 2027, aligning with Microsoft's next-generation console plans[4][7]. Despite these uncertainties, ASUS's role in the development process underscores the collaborative effort to bring a competitive Xbox-branded handheld to the market.
Citations:
[1] https://www.techradar.com/gaming/xbox-is-reportedly-teaming-up-with-a-mystery-manufacturer-to-launch-a-pc-gaming-handheld-this-year
[2] https://www.purexbox.com/news/2025/03/report-xbox-handheld-for-2025-being-made-by-asus-will-feature-console-like-interface
[3] https://www.purexbox.com/news/2025/03/microsoft-is-reportedly-partnering-on-an-xbox-handheld-device-to-launch-in-2025
[4] https://gamerant.com/xbox-handheld-asus/
[5] https://www.notebookcheck.net/Asus-to-launch-Xbox-branded-handheld-gaming-console-later-this-year.977836.0.html
[6] https://www.cnet.com/tech/gaming/microsoft-reportedly-working-on-handheld-set-to-launch-later-this-year/
[7] https://www.theverge.com/notepad-microsoft-newsletter/628073/microsoft-xbox-handheld-project-kennan-notepad
[8] https://www.videogameschronicle.com/news/the-first-portable-xbox-could-reportedly-hit-shelves-this-year/
[9] https://www.resetera.com/threads/the-verge-microsoft-isn%E2%80%99t-launching-its-xbox-handheld-this-year-but-asus-might-be.1132551/
[10] https://www.polygon.com/xbox/537029/xbox-handheld-report-2025
[11] https://thinglabs.io/microsofts-xbox-handheld-rumored-for-2025-will-challenge-steam-deck
[12] https://www.yahoo.com/tech/xbox-handheld-reportedly-coming-early-194500410.html