Microsoft isn’t releasing an Xbox handheld this year, despite recent rumors. In November, Microsoft Gaming CEO Phil Spencer cautioned that the device remains years away, still in prototype form. Yet, a Windows Central report stirred excitement, suggesting a handheld codenamed “Project Kennan” could arrive in 2025, with full next-gen consoles targeting 2027.
Sources told The Verge’s Tom Warren that Kennan—correctly spelled with two n’s—isn’t the immediate focus. Instead, Microsoft aims to unify Windows and Xbox into one ecosystem. Jason Ronald, VP of Xbox gaming devices and ecosystem, told The Verge in January that the company is merging “the best of Xbox and Windows together,” with visible changes expected in 2025.
Project Kennan and ASUS Partnership
The Kennan handheld, reportedly built with ASUS, is part of this unification push. Sources said it’ll feature an Xbox-style interface, including the official Xbox guide button, but run on Windows. It’s designed to support a universal library for Xbox and PC games. ASUS is a likely launch partner, though timelines could shift as development progresses.
Windows Central added that Kennan will integrate the Microsoft Store and PC Game Pass, while allowing apps like Steam. It may test new Windows 11 “device-aware” features, cutting bloatware seen in devices like the Lenovo Legion Go or ASUS ROG Ally. Widgets in the Xbox Game Bar could manage settings like TDP and fan speed for a smoother controller experience.
Project Bayside and Ecosystem Goals
Another initiative, Project Bayside, focuses on a consistent Xbox user interface across devices. This framework supports Microsoft’s goal of blending Xbox and Windows, easing game development for handhelds, consoles, and PCs. Ronald hinted that these efforts will broaden Xbox benefits across the Windows ecosystem.
Microsoft also plans a single game store, simplifying how developers build cross-platform titles. The big question remains: will this let Xbox games run natively on these new handhelds? The company believes this could reshape gaming, but details are still unfolding.
Long-Term Hardware Plans
Beyond 2025, Microsoft is crafting a premium Xbox Series X successor and new controllers, slated for 2027. Sources confirmed CEO Satya Nadella has greenlit these plans. Despite declining Xbox console sales, the user base is surging, fueled by the Activision-Blizzard acquisition and titles like Call of Duty, Diablo Immortal, and Candy Crush Saga.
The company’s strategy balances servicing loyal Xbox fans with new hardware innovation. It’s even placing exclusives like Forza Horizon 5 on PlayStation to boost profits—a move some question for its impact on Xbox hardware’s future. Still, Microsoft expects these efforts to keep it competitive with rivals like SteamOS.
Challenges Ahead
Microsoft’s gaming future ties closely to this Windows-Xbox merger. The Kennan handheld and Bayside framework are steps toward that vision, but success depends on execution. Until official announcements, timelines and features remain fluid, leaving fans eager for clarity on how these devices will perform.