A new report from Windows Central claims that "Xbox's new hardware plans begin with a gaming handheld set for later this year, with full next-gen consoles targeting 2027" and that Microsoft is working on a "Project Keenan" handheld in partnership with an unnamed OEM. The report has generated plenty of headlines about an Xbox handheld arriving in 2025, but the reality is a little more complicated and related to Microsoft's Xbox platform work to compete with SteamOS.
Sources familiar with Microsoft's plans tell me the company's Xbox platform plans for this year and beyond are centered on one big goal: the unification of Windows and Xbox. Jason Ronald, VP of Xbox gaming devices and ecosystem, revealed to The Verge in January that the company is combining "the best of Xbox and Windows together" and that we'd start to see changes later in 2025.
I understand the Xbox work that has hit the headlines this week is actually called Project Kennan, not Keenan. I'm told that Kennan is the codename for a handheld that is being manufactured by Asus, and it's part of a larger effort from Microsoft to unify Windows and Xbox towards a universal library of Xbox and PC games.
I'm told that Asus is one of the launch partners for these efforts, with an Xbox-branded handheld likely to debut later this year. I say likely because a lot of this platform work is still ongoing, so until Microsoft officially announces it, timelines could change.
Some of this platform work is codenamed Project Bayside, part of an Xbox UX framework that is designed to ensure there's a common Xbox UI across multiple devices to help combine Windows and Xbox. Together, Kennan and Bayside represent some of the work that Ronald was hinting at, opening up the benefits of Xbox to the broader Windows ecosystem.
Microsoft is also working on combining Windows and Xbox in a way where there's a single store of games and an easier path for game developers to build titles that span across handhelds, console-like hardware, and PC gaming rigs.
Microsoft Isn’t Launching Its Xbox Handheld This Year, But Asus Might Be | The Verge
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