Microsoft Delays Dedicated Xbox Handheld To Focus on Windows 11 Gaming Optimization For Handhelds

Expert Verified By

Project Kennan Is Still Due For This Year!

Story Highlight
  • Microsoft has delayed its plans for the dedicated Xbox handheld that was previously scheduled for a 2027 release.
  • They’re now working on improving the Windows 11 gaming experience for handheld devices.
  • They likely felt threatened by SteamOS, which delivers a better gaming performance for handhelds in comparison.

Currently, Microsoft has two Xbox handhelds in development, with the first, Project Kennan, a variant of the Asus ROG Ally, due this year. The second dedicated Xbox handheld is scheduled for release in 2027, alongside the next-generation hardware.

Xbox may have shifted its plans as the dedicated handheld is now on pause. The gaming giant has now shifted its focus towards optimising the Windows 11 gaming experience for third-party handhelds.

Why it matters: The Windows 11 gaming experience will be a huge part of handhelds, with Microsoft previously stating that it wants to merge the best of Xbox and Windows. Perfecting the Windows 11 gaming experience is essential for them before they start working on a dedicated handheld.

Xbox
Next-Gen Xbox Is Said To Be Their Last One

This report comes directly from Windows Central, which states that the dedicated Xbox handheld is currently sidelined. The focus is now on Project Kennan, which is set to be released this year.

This sudden shift in plans is likely due to Microsoft being threatened by the SteamOS. Valve has decided to bring its OS to other handheld devices. The Lenovo Go S is the first handheld to utilise SteamOS, achieving an average FPS increase of 12.64% compared to Windows 11.

Microsoft would need to improve the Windows 11 gaming experience for handheld devices significantly. Currently, the experience is quite bloated, resulting in a subpar gaming experience compared to SteamOS.

asus rog ally 2 xbox
First Look At Project Kennan

Project Kennan will likely be the first handheld to showcase their developed ecosystem. The handheld is nearly complete in terms of hardware, but it appears Microsoft is doubling down on its OS side, which may result in a delay for the OEM.

Returning to the dedicated Xbox handheld, it remains unclear whether these decisions will result in a delay. It is possible for the OEM to release on a different timeframe than the next-gen Xbox consoles.

What are your thoughts on this decision by Microsoft? Do you think Windows 11 can deliver a better gaming performance than SteamOS after all these changes? Let us know in the comments below or at the official Tech4Gamers Forums.

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