Microsoft pauses work on Xbox handheld to focus on third-party Windows gaming devices

[DragonSlayer101]

In a nutshell: Microsoft is reportedly pausing development of its rumored Xbox handheld to focus instead on third-party mobile gaming consoles running Windows. The device was originally expected to launch in 2027 alongside the next-generation Xbox consoles, but it has now been indefinitely delayed following a surprising shift in Microsoft's strategy.

According to Windows Central, Microsoft is not canceling its Xbox handheld entirely and intends to resume development in the future. For now, however, the company plans to "prioritize its teams to improve Windows 11 gaming performance" on third-party handheld devices.

One of the devices expected to benefit from this shift is an Asus handheld codenamed Project Kennan. The report claims the device is "essentially finished" and is expected to launch later this year. While specifications and features remain unknown, more details are likely to emerge as the release date approaches.

Microsoft's decision to focus on optimizing Windows 11 for gaming handhelds comes after gamers and tech reviewers criticized the company over the poor performance and efficiency of devices like the new Lenovo Legion Go S.

According to a recent video by YouTuber David Lee, the SteamOS version of the handheld delivers significantly better performance and battery life than the Windows 11 model in several popular games, despite running on identical hardware.

Lee believes SteamOS's superior performance is likely due to Linux not having the same background tasks and telemetry processes that burden Windows 11. Another factor contributing to better battery life and an overall smoother experience is SteamOS's more efficient sleep and suspend functionality compared to Windows.

For those not up to speed on the rumored Xbox handheld, a report from earlier this year claimed that Microsoft has been working with an unnamed PC maker on an Xbox-branded gaming handheld, potentially launching in late 2025. The device is said to be "unmistakably Xbox," complete with the official Xbox guide button and signature design language.

Microsoft's Jason Ronald has also revealed the company's plans to bring an Xbox-like gaming experience to Windows PCs. According to Ronald, implementing the new interface won't be difficult because the Xbox operating system is essentially built on top of Windows. He added that the updated UI will deliver a premium gaming experience to PC players, regardless of their hardware.

Permalink to story:

Microsoft pauses work on Xbox handheld to focus on third-party Windows gaming devices

 

[DrSuess]

I think its cancelled having more 3rd party handhelds would do nothing to help a Microsoft branded handheld device prosper in the market. Frankly working on the software and APIs for handheld devices is a better use of Microsoft's time and money, as opposed creating another device that will have a low adoption rate and just be discontinued within a few years. XBox, and Surface are the only hardware devices that have endured over the years while Microsoft has cancelled many of its hardware devices, this MS branded handheld would probably end up being one of the casualties.

 

[FaTaL]

been indefinitely delayed following a surprising shift in Microsoft's strategy.

because not that many people use handhelds and its ridiculous to try and compete against steam deck and nintendo.

its like microsoft getting back into mobile phones ,when apple and google own 99.99% of marketshare.

 

[gamerk2]

"Lee believes SteamOS's superior performance is likely due to Linux not having the same background tasks and telemetry processes that burden Windows 11."

I don't see this as the primary issue; those background tasks are *very* low workload, and even though there's a lot of them, it isn't like we're running dual core CPUs anymore. I could see these accounting for a few FPS...but not the 10+ FPS difference we're seeing. Something else is going on, be it how memory is being cached, the underlying filesystem (NTFS could very well be a bottleneck), or some weird windowing/compositor issue.

Then again, if TS wanted, it could investigate by disabling most of said tasks, benchmarking again, and checking for the difference. But nah, let's just go with "Windows sucks" and call it a day, right?