Tech Desk 
Jun 01, 2025
Rumoured Xbox handheld has long been causing a stir in the top-notch gaming circles, but they've now been dismissed as the tech giant has reportedly paused the development on it.
The purported Xbox handheld was likely to be a part of the next generation of gaming consoles. By setting the handheld off the cards, Microsoft is reported to have shifted its focus to optimising Windows 11 for handheld devices in a bid to enhance performance and battery efficiency.
It's noteworthy that this decision will not take a toll on other upcoming consoles from Microsoft, such as the Xbox-branded Asus device, codenamed Project Kennan, which is expected to debut later this year.
Citing a report by Windows Central, Gadgets360 reported that the dismissal of the internal Xbox handheld indicates that the device may not debut alongside Microsoft’s next-gen consoles in 2027.
Project Kennan is a third-party device which will make the most of the optimised Windows 11, since the revamped version will have addressed issues like poor battery life and navigation difficulties that have ruined previous handhelds.
The tech titan's shifting focus towards Windows 11 revamp is likely to be influenced by the growing competition from SteamOS, which recently expanded beyond the Steam Deck.
Lenovo's Legion Go S, launched earlier this year, comes with greater performance and also operates on Valve's operating system. Moreover, the imminent launch of the Nintendo Switch 2 in June amounts to further competition in the handheld sphere.
