I come to you at this time with some contemporary information about Xbox’s handheld plans. Beforehand, I reported that Microsoft was engaged on a local Xbox handheld alongside an Xbox Collection X successor, deliberate to launch round 2027. It now appears that Microsoft’s priorities have shifted considerably.
UPDATE: Beforehand, this text famous “Pembrooke” because the codename for the hand-held, however we have obtained clarification that this codename is perhaps incorrect, keep tuned for an replace on that half. I’ve additionally added some emphasis that it is not the ASUS system “Kennan” that’s being sidelined, however Microsoft’s personal inner Xbox first-party handheld. The remainder of the report stays unchanged.
Simply to emphasise right here, it isn’t Xbox’s ASUS system “Kennan” that’s being pushed again. It is Microsoft’s personal inner Xbox handheld that has been shelved (for now). I’ve a wide range of codenames for this unseen system, nevertheless it’s unclear as of writing which precisely is the proper one. For the time being, it appears there are three prototype units in improvement for Microsoft’s Gen-10 effort, with the hand-held being parked, for now.
Certainly, Microsoft nonetheless needs to construct its personal Xbox handheld sooner or later, however Microsoft has determined to prioritize its groups to enhance Home windows 11 gaming efficiency, particularly for units just like the ASUS companion system “Venture Kennan.” It is doable that the existential menace from SteamOS, which on paper delivers higher gaming efficiency than Home windows 11 itself, has knowledgeable these choices. Our sources have indicated to us that Microsoft remains to be deeply investing in creating its personal Xbox gaming handheld know-how sooner or later, nevertheless it was introduced internally at this time that the priorities are shifting extra deeply in direction of third-party OEM handhelds within the interim.
Venture Kennan is the codename of Microsoft’s companion Xbox handheld with ASUS. We perceive that Kennan remains to be concentrating on a launch for later this 12 months. The {hardware} aspect is basically completed. Tentatively, we consider this system to be among the many first utilizing the AMD Z2 Excessive, however we’re nonetheless engaged on strong affirmation for that.
There is a considerably boosted effort between the Xbox and Home windows groups to enhance the expertise on the software program aspect. Units just like the ASUS ROG Ally and Lenovo Legion Go already run on common Home windows 11, and the Xbox layers and apps have gotten higher, however there’s nonetheless quite a lot of enhancements that may very well be made.
It was all the time a bit unclear if Microsoft’s handheld was designed to be a local Home windows 11 PC gaming-style handheld, or extra of a local Xbox console-style expertise. However we probably now have the reply.
It appears that evidently it was certainly meant to be a tool that might run full Xbox video games, however Microsoft has determined to prioritize its groups on the companion alternative round units like Kennan — at the very least for now. I have been advised that Microsoft nonetheless has massive ambitions and is investing closely to ship a local Xbox handheld, however the shift is about prioritizing and allocating assets proper now. There have been no layoffs or something like that because of this reprioritization.
Microsoft can be engaged on next-gen Xbox cloud programs, which are actually in testing at Microsoft’s HQ in Redmond. The brand new cloud platform ought to carry its latency nearer to parity with NVIDIA’s GeForce Now service, which is arguably the efficiency chief proper now (and nonetheless integrates Microsoft’s Xbox / PC Sport Cross). NVIDIA GeForce Now simply launched a local app for the Steam Deck as nicely, presenting one other competitor to Microsoft’s cloud gaming technique. Microsoft was beforehand engaged on a cloud-first mini console dubbed Hobart, which was additionally cancelled.
Handhelds are the long run — Microsoft is investing to make sure it will not get left behind
Microsoft probably has a while stacked in opposition to it right here, with SteamOS and the Steam Deck platform already spreading throughout to Home windows 11-based PC gaming handhelds. Now you can set up SteamOS on the Legion Go and ASUS ROG Ally, and preliminary assessments reveal enormous battery life and efficiency enhancements, at the price of entry to sure providers (like PC Sport Cross) and sure launchers and options.
For players preferring Steam, SteamOS is more and more presenting an existential menace to Home windows’ gaming dominance. Microsoft appears to have acknowledged right here that it could’t completely relaxation on its laurels right here.
Microsoft has an Xbox Showcase developing on June 8, 2025, the place it would reveal the newest and best video games from its huge content material portfolio. No one can criticize Microsoft on its gaming content material output proper now, with Xbox Sport Cross being completely on fireplace, atop dozens of studios churning out high-quality content material. However, the {hardware} future stay a little bit murkier — the potential is large, although. Microsoft’s first-party {hardware} groups throughout Xbox and Floor are best-in-class, however Microsoft company might need totally different concepts about methods to develop its gaming model.
Hopefully, these precedence shifts will ship enhancements PC players are in search of, and finally, result in a extra optimized platform for issues like Xbox Play Wherever, Xbox Cloud Gaming, and the multi-modality that Microsoft clearly believes is the gaming future. However can they do it quick sufficient earlier than the PS6, Nintendo Swap 2, and SteamOS take all of the limelight? Time will inform.
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