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For several months, speculation has been rampant about a potential Xbox handheld device. Recent reports from Windows Central suggest that fans may have to wait even longer, as Microsoft has decided to pause its handheld project to focus on enhancing the Windows 11 experience for third-party devices. While no official word has been released about the handheld’s status, several codenames have emerged online.
It’s important to note that Xbox’s collaboration with ASUS for Project Kennan is still on track. The delay only pertains to the company’s internal handheld initiative. Although a specific reason wasn’t provided, it is believed that Microsoft aims to optimize Windows 11 for handheld devices, especially since SteamOS currently outshines Windows in performance benchmarks.
According to sources at Windows Central, Microsoft remains committed to developing a handheld, but it has been temporarily shelved. Phil Spencer initially floated the idea for this device back in November 2024, indicating it might take time before it reaches consumers. The Xbox handheld was originally projected to debut in 2027, but that timeline may now have shifted further into the future.

In contrast, Project Kennan is still expected to debut later this year. This device, rumored to be a variant of the ROG Ally, had its details partly leaked earlier this month, revealing a design akin to an Xbox controller, complete with a dedicated Xbox button. Images from the leaks also showcased some of its technical specifications.
The anticipated handheld will reportedly feature an AMD Ryzen Z2 Extreme CPU, a 7-inch 120Hz display, and 64GB of RAM. The non-Xbox variant is expected to have lower specifications, including a less powerful CPU. However, specifics about storage capacity and the potential inclusion of an SD card slot for expandable memory have yet to be announced.