Overview

• Windows Central reports Microsoft shelved its own Xbox handheld development to prioritize Windows 11 gaming performance on handheld PCs.
• The decision reflects efforts to close the gap with SteamOS, which currently delivers stronger gaming and battery efficiency on devices like Valve’s Steam Deck.
• Asus’s Xbox-branded Project Kennan hardware is reportedly finished, with software optimization still under way ahead of a late 2025 release.
• Microsoft confirms its next-generation Xbox console, targeting 2027, is unaffected by the handheld pause.
• The Xbox Game Showcase on June 8 may highlight Windows 11 improvements for portable play but is unlikely to unveil a first-party Xbox handheld.