Xbox Handheld Rumors: Microsoft and ASUS Reportedly Collaborating on New Gaming Device Set for 2025

Amid increasing competition in the portable gaming sector, Microsoft is reportedly preparing to make a significant move by partnering with ASUS to develop its first-ever Xbox-branded handheld device, slated for a 2025 release.

This development comes as anticipation builds around the next-generation Nintendo Switch 2, positioning the rumored Xbox handheld as a strong contender in the expanding portable gaming market. According to new information shared by The Verge, the forthcoming device will see Microsoft joining forces with ASUS, the company behind the popular ROG Ally handheld series.

The device is expected to be powered by Windows, yet offer a user experience and interface that closely align with what gamers have come to expect from Xbox hardware.

While details about the hardware’s exact specifications remain under wraps, sources indicate the handheld will maintain strong Xbox design sensibilities. Backing up these claims, Windows Central has suggested that Microsoft’s Xbox handheld could hit the market as soon as summer 2025, with a possible retail price range between $499 and $599.

It's worth noting that these details are still subject to change and should be treated as rumors until Microsoft makes an official announcement. The project, reportedly codenamed 'Kennan,' is anticipated to feature hallmark Xbox elements such as an official Xbox guide button and an interface designed for seamless integration with the Microsoft Store and PC Game Pass services.

The device will emphasize PC-oriented capabilities, giving users the freedom to install third-party programs like Steam, echoing PC gaming OEM partnerships akin to those between Lenovo and Valve for SteamOS. Industry insiders believe this collaboration with ASUS serves as a prelude to even bigger hardware ambitions for Microsoft, with reports suggesting development of an in-house, first-party Xbox handheld tailored specifically for native gaming.

This potential device is speculated to target a 2027 release window, following Microsoft’s previously confirmed plans for new console systems and portable ventures. Microsoft has recently shaken up its content strategy by launching key titles on rival platforms, including Sea of Thieves, Hi-Fi Rush, Grounded, and Pentiment, now available on both PlayStation 5 and Nintendo Switch since 2024.

Looking ahead, Microsoft’s gaming leadership, including CEO Phil Spencer, has reinforced its commitment to multiplatform availability, even confirming the highly anticipated return of Call of Duty to Nintendo systems and voicing enthusiasm for the upcoming Switch 2. While official details on the Xbox handheld remain unannounced, the prospect of Microsoft and ASUS entering the portable gaming market marks a significant shift, echoing the growing competition and innovation among prominent hardware makers like Nintendo.

Professional and enthusiast gamers alike will be watching closely as further information emerges in the months ahead.

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