Microsoft Delays Xbox Handheld to Focus on Windows 11 Gaming

Microsoft has reportedly put its internal Xbox handheld project on hold to prioritize improving handheld gaming performance on Windows 11. The company is putting its own device on pause for…

By Hardik Dhamija

June 4, 2025

2 min read

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Microsoft has reportedly put its internal Xbox handheld project on hold to prioritize improving handheld gaming performance on Windows 11. The company is putting its own device on pause for now to close the performance gap between Windows 11 and SteamOS, which currently provides a superior handheld gaming experience, according to Windows Central.

Xbox Handheld Plans Reportedly on Standby as Microsoft Focuses on Windows 11 Gaming Performance

This suspension won’t affect the third-party handheld from Asus itself, which remains on target for the end-of-2025 launch. Microsoft hasn’t tossed the idea of an Xbox-branded handheld out the window; it has just switched to focusing on getting the software side out of the gate. It should be noted that this shift in strategy would likely push back the previously-rumored launch of 2027, which was believed to have been timed with the next Xbox home console.

The speculated Xbox handheld, Project Kennan, has popped up in a leaked image from the U.S. Federal Communications Commission (FCC). Initial details from the leak suggested it would be powered by AMD’s AERITH Plus chip with four CPU cores, 16GB of RAM, and up to 20 watts of power consumption. However, Windows Central now speculates that Microsoft may be eyeing the more powerful AMD Ryzen Z2 Extreme chip for the device, though confirmation is still pending.

It’s unclear if Project Kennan or any related hardware will make an appearance at the upcoming Xbox Games Showcase, set for June 8 at 10 AM PT / 1 PM ET / 6 PM BST. However, fans can look forward to plenty of game announcements and trailers.

Confirmed appearances include Gears of War: E-Day, Fable, Clockwork Revolution, Perfect Dark, State of Decay 3, Everwild, and Contraband. In addition, a post-show Direct-style presentation will be dedicated to Obsidian’s upcoming RPG, The Outer Worlds 2. For now, Microsoft seems intent on building a stronger Windows gaming platform before introducing new handheld hardware.