Microsoft is not launching an Xbox handheld this year, despite speculation. In November 2024, Microsoft Gaming CEO Phil Spencer stated that the device is still in prototype form and years away. However, a new Windows Central report suggests that a handheld, codenamed Project Kennan could arrive in 2025, while next-gen Xbox consoles are targeted for 2027.
Sources confirmed to The Verge’s Tom Warren that Project Kennan – spelled with two ‘n’ – is not the immediate focus, as Microsoft prioritizes merging Windows and Xbox into a unified ecosystem. The handheld is reportedly being developed in collaboration with ASUS and will feature an Xbox-style interface with the official Xbox guide button, run on Windows supporting both PC and Xbox games, and allow access to the Microsoft Store, PC Game Pass, and third-party apps like Steam.
Kennan may also introduce Windows 11 ‘device-aware’ features, eliminating unnecessary bloatware seen in devices like ASUS ROG Ally and Lenovo Legion Go. Xbox Game Bar widgets could manage TDP, fan speed, and other settings to improve the controller experience.
Alongside Project Kennan, Microsoft is working on Project Bayside, a framework aimed at creating a unified Xbox UI across consoles, handhelds, and PCs. Jason Ronald, VP of Xbox gaming devices, confirmed that Windows and Xbox are being integrated to simplify game development across devices.
Microsoft also plans to launch a single game store, allowing seamless cross-platform experiences. The big question remains is, Will Xbox games run natively on the handheld? Beyond 2025, Microsoft is developing a premium Xbox Series X successor, new Xbox controllers, and both are slated for 2027, with CEO Satya Nadella approving these plans.
Despite a decline in Xbox hardware sales, the user base is growing, fueled by Microsoft’s Activision-Blizzard acquisition and games like Call of Duty, Diablo Immortal, and Candy Crush Saga. Microsoft is even testing PlayStation releases, such as Forza Horizon 5, to boost profits – raising questions about the future of Xbox-exclusive hardware.
Microsoft’s gaming future depends on the success of this Windows-Xbox merger. While Project Kennan and Bayside move toward that vision, execution remains key. For now, timelines and features are fluid, leaving Xbox fans eager for official details on how the Xbox handheld will perform.
