Competition with SteamOS has disrupted Microsoft's plans: the company has frozen development of the handheld console for the sake of optimising Windows 11

By: Anton Kratiuk | 30.05.2025, 17:58
Portable Xbox: a concept that could change gamification on the go An unofficial concept of the Xbox handheld. Source: Google

Microsoft has high hopes for portable gaming consoles, and Xbox head Phil Spencer has openly admitted that the corporation is preparing its own gadget, although he emphasised that the device's release will not happen in the next few years. But according to new information, the development and release of the handheld console may be stretched even further.

Here's What We Know

Authoritative insider and journalist of the Windows Central portal Jez Corden reported that Microsoft has frozen the development of its own portable console. According to his sources, the corporation will focus on improving the performance of Windows 11 on gaming gadgets, as it is significantly inferior in performance and energy efficiency SteamOS from Valve, as confirmed by a recent study.

Microsoft is also focusing on working with ASUS on a console codenamed Project Kennan, which is expected to be similar to the ROG Ally but honed to work with the Xbox ecosystem and its various applications, including cloud services.

Corden believes that Microsoft is wary of SteamOS' advantage in the handheld console market and wants to close the gap between Windows 11 and Valve's system before returning to build its own handheld.

It's possible that ASUS' Project Kennan will be officially announced at the Xbox Showcase, which takes place on 8 June.

Source: Windows Central