In an exclusive report, Windows Central has claimed that Microsoft is collaborating with an unnamed "PC gaming OEM" on an Xbox handheld console. Jez Corden has heard from several insiders; they reckon that a "later in 2025" launch is possible, if development goes smoothly enough. A leak from Winter 2024 indicated that Microsoft's gaming division was "
targeting a handheld gaming experience," but Phil Spencer has freely disclosed his
ambitions for his team's portable project. Last November, he confirmed that
something was in pipeline—with a view to take on very visible competition: Steam Deck, ASUS ROG Ally and Lenovo Legion Go. The latest Windows Central investigative piece divulges some unprecedented details about: "codename 'Keenan,' this gaming handheld will look unmistakably 'Xbox' we're told, complete with an official Xbox guide button, and Xbox design sensibilities. Given that this is a partner device, similar to Lenovo's SteamOS partnership with Valve, I expect this handheld to be more PC-oriented. Keenan is almost definitely running full Windows, putting the Microsoft Store and PC Game Pass front and center, alongside the ability to install things like Steam."
Based on inside track knowledge, Corden anticipates operating system innovations: "I expect the handheld will test new Windows 11 'device aware' capabilities, while reducing third-party OEM bloatware that are typical of devices like the Lenovo Legion Go and ASUS ROG Ally. I expect Microsoft will leverage widgets on the Xbox Game Bar on PC for controlling things like TDP and fan speed, while hopefully having a more streamlined OS experience for controller use. Of course, existing PC gaming OEMs will benefit from these efforts as well—but the research will also help with Microsoft's further-out plans." Almost a month and a half ago, Spencer outlined a sort of
wishlist for "innovative" future Xbox hardware—given that Sony is rumored to be devising a "standalone PlayStation handheld," he was likely envisioning next-gen home consoles. Windows Central's sources have provided additional insights into potential Xbox Series X|S successors.