Overview

• Microsoft has shelved its first-party Xbox handheld project to focus on enhancing Windows 11’s gaming performance on portable devices.
• The decision follows findings that Windows 11 lags SteamOS in both graphics frame rates and battery efficiency on handheld PCs.
• Valve has opened SteamOS to devices beyond its Steam Deck, including Lenovo’s Legion Go, demonstrating performance gains over Windows 11 in third-party tests.
• Microsoft continues collaborating with Asus on a handheld codenamed Kennan, which is slated to launch later this year.
• An internal Xbox handheld remains under consideration but is deprioritized until Windows 11 can rival competing operating systems.