Rumors of a long-rumored Xbox handheld gaming console have begun to gather momentum with new details. Windows Central's Jez Corden previously reported that the device would be developed in collaboration with gaming PC makers and would run on Windows, and now he's shared additional details.
A new report from Corden says that the console is codenamed Project Kennan and will be manufactured by ASUS, which introduced its own ROG Ally console in 2023. As previously reported, Microsoft is working with manufacturers to optimize Windows elements for this type of product, with a focus on Xbox services and software, as well as the Xbox Game Bar.
The new handheld console will have a similar look to the aforementioned ROG Ally, but with a distinctive Xbox style. However, insiders are yet to confirm whether this model will be a replacement for the ROG Ally 2, or whether ASUS will release two separate consoles. Corden also notes that Xbox games will not be available on this handheld console, and it will be limited to a library of PC games.
The only Microsoft games that will be playable on Kennan will be those that support Xbox Play Anywhere. These games will also be playable on Xbox One, Series X|S. The portable console will also receive support for cloud gaming, including through Game Pass Ultimate, although the main focus will be on this catalog. Since the device runs on Windows, users will also be able to run other game clients, such as Battle.net, EGS and Steam.
The uncertain situation with US tariffs makes it difficult to determine the exact price of the upcoming device, but the insider indicates that the base model will cost between $499 and $599. The base model was mentioned for a reason, as the console may come in two versions, but the exact difference between them is not yet known. Perhaps the older model will have a better processor or more storage.
Corden reports that the console will use AMD Ryzen Z2 Go processors, which were introduced at CES 2025, and which are already installed in another portable console, the Lenovo Legion Go S. The problem is that choosing this chip could make the console weaker than the 2023 ROG Ally, which is equipped with a more powerful Ryzen Z1 Extreme. While Lenovo's console has not received very positive reviews, ASUS has the opportunity to fix some of the shortcomings, including improving the screen, in order to optimize overall performance.
It's also worth noting that Microsoft's console isn't scheduled to launch until later in 2025, so it's likely to feature the flagship Ryzen Z2 Extreme, which hasn't been used in any device yet. It's possible that the companies will release two models, one powered by the Z2 Extreme and the other by the Z2 Go, which would explain the existence of two console variants.
Continuing on the release theme, Corden again notes that issues with the US-China trade war could complicate things, but he suggests that the new console could be announced in the summer of 2025, with the release itself taking place a little later that year. If these assumptions are correct, the announcement could take place during Microsoft Build in May or the Xbox Showcase in June.
Before that, Corden also notes that Microsoft is continuing to work on its own portable console, which could be even more similar to the Xbox. However, its release is unlikely to happen before 2027. This device is expected to most likely support games from a full-fledged console.