(Credit: Joseph Maldonado)
Handheld consoles are having a big resurgence. Nintendo's Switch 2 has finally been released to stores, Steam Deck continues to be popular, and there are a variety of portable PC devices that let you play your games even when traveling. There are rumors of a PlayStation handheld floating around, indicating that Sony is also looking to capitalize on the rush for gaming on the go. However, it doesn’t look like Microsoft is going to be entering the fray anytime soon.
Windows Central reports that Microsoft has paused development of an Xbox handheld. The console has been heavily rumored for the last year, with reports pointing to a late-2025 launch. There was even a teaser from Microsoft Gaming chief Phil Spencer.
The most recent leak, however, says Microsoft has switched its attention to improving Windows 11 gaming performance for third-party devices. Asus is rumored to be working on its own handheld running Windows 11, codenamed "Project Kennan," and Microsoft reportedly wants to finesse the platform for that launch.
This comes as SteamOS has gathered momentum in recent months. The software first powered the Steam Deck, and earlier this month, a version of the Lenovo Legion Go S was the first third-party console to run on SteamOS.
SteamOS is also now available for many other devices, including the original Asus ROG Ally, which has seen improvements to battery life and processing power (a potentially worrying development for Microsoft).
According to Windows Central, the upcoming Asus console is still aiming for a 2025 release. If that's a success, Microsoft may then turn its attention back to an official first-party Xbox alternative to showcase what Windows 11 can do.
This latest report also says development at Microsoft on an Xbox Series X successor continues, with the company eyeing a 2027 launch for its next-gen console.