The upcoming collaboration project between Microsoft and ASUS is slowly materializing in the form of a handheld gaming console, as recently released promotional material shows. The latest teaser video shows an ASUS ROG Ally and Xbox controller merging into a single unit, becoming an animated character, indicating a hardware partnership that combines Microsoft's software ecosystem with ASUS's portable hardware expertise. Project Kennan, as the device is reportedly codenamed, contradicts earlier Xbox executive statements regarding development timelines. Initial projections suggested the hardware launch within a 2-3 year window, yet current information suggests a potential Q3/Q4 2025 release, with perhaps an announcement in Q2 this year. Following Steam Deck's market success, the accelerated schedule may come from increased competitive pressure in the handheld PC gaming segment.

The device appears to feature a predominantly black chassis, though other specifications remain undisclosed. AMD architecture integration will likely continue the foundation established in both Xbox Series consoles and the ROG Ally platform. This hardware choice would prioritize performance-per-watt efficiency crucial for portable gaming applications. A significant technical decision remains regarding the operating system implementation: whether to deploy standard Windows with Xbox integration or develop a custom Xbox-centric interface layer. This choice will directly impact ecosystem compatibility, application support, and user experience fluidity. Both companies have maintained limited official communication regarding the project, with the teaser video serving as the primary confirmation of their collaboration.