June 13, 2025, 1:32 pm | Read time: 3 minutes
Microsoft, in partnership with Asus, has announced two new handheld consoles bearing the Xbox name. This move is part of a strategy to expand the gaming division across more devices. However, this could spell the end for a standalone mobile Xbox.
In early June, Microsoft officially unveiled its first handheld console with Xbox branding. For a long time, rumors swirled about such a device, but it was only recently revealed that it was developed in collaboration with manufacturer Asus. In fact, Microsoft also seems to have been working internally on mobile Xbox prototypes for its own handheld. However, the realignment of the gaming division now makes this unlikely.
Asus Collaboration Instead of Own Xbox Handheld
Before the launch of the ROG Xbox Ally, there was much confusion about a possible Xbox handheld. At the end of May, “Windowscentral” reported that Microsoft had likely shelved the Xbox project codenamed “Kennan.” However, this refers to the Xbox Ally, which has been officially announced and is set to release for the winter 2025 market. It was not “Kennan” that was meant, but Microsoft’s internal handheld project. “The Verge” has now confirmed, citing insider sources, that this is indeed the end. The company is instead focusing on Xbox as a software platform. TECHBOOK has asked Microsoft for a statement but has not yet received a response.
In late 2024, Microsoft launched its “This is an Xbox” advertising campaign. The spot features devices from laptops to VR headsets, all of which are supposed to provide access to Xbox gaming. The argument: “You are probably reading this on an Xbox-capable device that can be powered on with the help of cloud gaming or the Xbox app for PC.”
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The Future of Xbox Lies in Software
As Roanne Sones, vice president for gaming devices and ecosystem at Xbox, writes in the announcement, the ROG Xbox Ally “delivers a new way of gaming, as we combine the power of Xbox with the freedom you expect from Windows.” In the introduction video, Carl Ledbetter, partner director of design, speaks of a “breakthrough for Xbox.” According to Microsoft, this is “just the beginning,” hinting that the company wants to bring Xbox gaming to even more devices and make it the first stop for gamers.
Microsoft has given the Xbox team free rein to adjust key elements in Windows to enhance gaming performance. For instance, the ROG Xbox Ally and Xbox Ally X boot directly into the Xbox interface–bypassing the Windows desktop entirely. This doesn’t even load in the background, saving several gigabytes of RAM. The Xbox app now also integrates games from other providers, such as Battle.net and Steam, to unify everything on one device.