Microsoft Gears Up for Handheld Xbox, Partnering with Asus

Microsoft is reportedly forging ahead with plans to launch an Xbox-branded handheld gaming console, codenamed "Project Keenan," with Asus as the OEM manufacturer. This venture marks a significant step for Microsoft into the burgeoning portable gaming market, fueled by the success of devices like the Steam Deck and Asus's own ROG Ally.

Rumors of a handheld Xbox have swirled for years, culminating in confirmation from Microsoft Gaming CEO Phil Spencer in November 2024 that the company was actively developing such a device. Xbox VP Jason Ronald further emphasized Microsoft's ambition to unify console and PC gaming experiences.

According to reports, Project Keenan will run a customized Xbox interface atop Windows, optimized for seamless Xbox Game Pass integration and cloud gaming. While the anticipated launch is set for late 2025, the timeline remains fluid as the device is still under development.

Asus, a seasoned player in the handheld gaming arena with its ROG Ally, will reportedly handle the manufacturing. This partnership underscores Microsoft's strategy to leverage existing OEM expertise to expedite its entry into this competitive space.

The handheld Xbox is rumored to be powered by AMD's Ryzen Z2 Go chip, promising robust performance in a portable format. Pricing is expected to fall within the $499-$599 range, positioning it as a competitive alternative to existing handheld gaming PCs.

This initiative is part of Microsoft's broader vision to expand its gaming ecosystem through strategic OEM partnerships. If successful, Project Keenan could significantly broaden Xbox's reach, offering console-quality gaming on the go and solidifying Microsoft's position in the evolving gaming landscape.