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Xbox Handheld Reportedly Delayed so Microsoft Can Focus on Making Windows Handhelds Compete with SteamOS

  • Microsoft delayed its first-party Xbox handheld to focus on enhancing gaming on Windows 11 and support third-party devices, as reported in May 2025.
  • This shift follows internal decisions to prioritize Windows 11 optimization and partner collaborations like Asus’ handheld codenamed Project Kennan, with the Xbox handheld now planned for years later.
  • Microsoft is actively developing its next-generation Xbox console, targeting a 2027 release, and describes it as delivering an unprecedented advancement in gaming technology, while meanwhile supporting third-party OEM handheld devices.
  • Phil Spencer stated last year that a first-party handheld is still years away, while images of the Asus collaboration device leaked recently, suggesting its launch could be this year.
  • This strategy responds to Valve’s SteamOS handheld success, which reportedly outperforms Windows devices, implying Microsoft aims to compete by focusing on Windows 11 improvements and OEM partnerships.
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ResetEra broke the news in on Thursday, May 29, 2025.
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