Microsoft is reportedly pausing development of its first-party PC gaming handheld, which was originally planned to ship closer to 2027. The company is not completely shying away from handheld initiatives and will instead work closely with third-party OEMs while optimizing the PC mobile model of Windows 11.
Word comes by way of Windows Central, which claims that the first-party Xbox PC gaming handheld is no longer the priority. However, the company is continuing to invest in the development of its ASUS-partnered devices, known as Project Kennan. Microsoft is also said to be dedicating resources to invest in improving Windows 11 gaming performance for devices like Project Kennan.
While at first blush it may appear as though Microsoft may be getting cold feet from investing in the PC gaming handheld market, the latest report indicates quite the opposite. Project Kennan is shaping up to be an intimate partnership between Microsoft and Asus. The PC gaming handheld is reportedly still on track to release later this year. It’s said that the device may be one of the first to utilize the AMD Z2 Extreme chipset.
However, Microsoft’s hesitation towards launching its own gaming handheld appears to come from trepidations revolving around Windows 11 and its optimization on these devices. With SteamOS being a powerhouse in software, Microsoft may be feeling the heat and doesn’t want to drop the ball right out of the gate. Asus’ ROG Ally, alongside the Lenovo Legion Go, already runs Windows 11. Both devices also operate with a coat of paint from the Xbox app.
It’s unclear how long Xbox’s first-party PC gaming handheld will be placed on ice. However, Windows Central’s Jez Cordon does state that Microsoft’s Xbox Series X successor is still on track. Development is said to be continuing at “full pace.”
With an Xbox Games Showcase planned for Sunday, June 8th, we expect to see quite a lot of announcements. If Project Kennan is on track for later this year, there’s a possibility we may catch the first glimpse of it during the showcase.
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