Microsoft is reportedly partnering with Asus on a new Xbox gaming handheld, according to a recent report from Windows Central. The device, currently known under the codename Project Kennan, is expected to launch in 2025 and will follow a design more closely aligned with the Xbox brand, which means it will be green and have an X on it.
The handheld will reportedly be similar to the existing Asus ROG Ally, but with what the report calls an Xbox-based overhaul. One of the key differences is said to be the inclusion of an Xbox-style Guide button, further pushing the branding toward Microsoft’s consoles. It’s currently unclear whether this device will be a variant of the upcoming ROG Ally 2 or an entirely new model that is different from the standard release.
Despite the Xbox branding, the handheld will not run native Xbox games. Instead, it will function as a standard Windows-based device, similar to the ROG Ally. Players will be able to access content through Xbox Play Anywhere, Xbox Cloud Gaming, and Xbox Game Pass Ultimate. Additionally, support for other storefronts, including Steam, the Epic Games Store, and Riot’s launcher will be available, making the device pretty much a fully functional handheld PC, not even like the Steam Deck which runs its own Linux-based operating system.
As for the internal specifications, Project Kennan could use AMD’s Z2 Go or Z2 Extreme chipsets, though this has not been confirmed. Pricing details remain unofficial, but estimates suggest the handheld could be priced between $499 and $599 for the base model with limited storage and a slightly toned down APU.
Microsoft reportedly sees the device as a proof of concept to explore what an Xbox-style handheld PC could look like. To support the project, Xbox apps are being redesigned with handheld usability in mind, and the Xbox Game Bar has recently been updated to appear more in line with the Xbox console experience rather than standard Windows UI.
