Xbox Handheld DOA? Microsoft Pulls Plug, Bets on Rivals Instead!

Microsoft Shifts Gears: Xbox Handheld "Sidelined" in Favor of Third-Party Portable Devices

The winds of change are blowing at Microsoft, and it appears their gaming strategy is adjusting to the evolving landscape of portable gaming. Reports indicate that Microsoft has "sidelined" its internally developed Xbox handheld, opting instead to prioritize support and optimization for third-party devices, most notably ASUS' Project Kennan.

This news, initially reported by Windows Central, marks a significant shift from earlier this year. Back in March, the understanding was that Microsoft was pursuing a dual-pronged approach: partnering with ASUS for an Xbox-branded portable gaming PC (Project Kennan) slated for release this year, while simultaneously working on its own dedicated handheld device anticipated alongside the next generation Xbox console in 2027.

A Strategic Rethink: Focusing on Windows 11 Optimization

According to sources within Microsoft, the decision to sideline their in-house handheld stems from a desire to "prioritize its teams to improve Windows 11 gaming performance, specifically for devices like the ASUS partner device Project Kennan." This suggests a concerted effort to ensure that the existing and emerging crop of Windows-based handhelds offer a compelling and seamless Xbox gaming experience.

It's important to note that this doesn't necessarily mean the complete abandonment of Microsoft's handheld ambitions. Windows Central clarifies that the company "still has big ambitions and is investing heavily to deliver a native Xbox handheld," but for now, the focus is squarely on:

• Supporting third-party devices like Project Kennan.
• Improving Windows 11 gaming performance on portable PCs.

Project Kennan: Hardware Ready, Software Refinement in Progress

The ASUS Project Kennan, reportedly "essentially finished" on the hardware side, is now the subject of a "significantly boosted effort" between Microsoft's Xbox and Windows teams. The goal is to fine-tune the software experience, ensuring a smooth and optimized performance for Xbox Game Pass and other Xbox services on the device. The current plan remains to launch the Xbox-branded ASUS device "later this year."

Facing the Competition: Steam Deck and Beyond

This strategic shift likely reflects the increasing competition in the handheld gaming market. Valve's efforts to bring SteamOS, the operating system powering the Steam Deck, to third-party devices pose a significant challenge. The availability of SteamOS on devices like the Lenovo Legion Go S, an official partner machine, demonstrates the growing viability of alternative platforms. Microsoft's focus on Windows 11 optimization can be seen as a direct response to this evolving landscape.

Looking Ahead: Next-Gen Xbox and Cloud Ambitions

While the handheld news might be grabbing headlines, Microsoft remains committed to its console ambitions. Xbox president Sarah Bond has previously promised that the next-generation Xbox Series X/S successor will deliver "the largest technical leap that you will have ever seen in a hardware generation." According to Windows Central, Microsoft is currently developing "three prototype devices" for this next-gen console. Furthermore, the company is reportedly working on "next-gen Xbox cloud systems" aiming to reduce latency and bring it closer to NVIDIA's GeForce Now service.

Tune in for More: Xbox Games Showcase on June 8th

For a glimpse into the future of Xbox gaming, be sure to tune into the Xbox Games Showcase on Sunday, June 8th, at 6pm UK time. We anticipate hearing more about upcoming games and the broader vision for the Xbox ecosystem.

In conclusion, Microsoft's decision to refocus its portable gaming strategy highlights the dynamic nature of the industry. By prioritizing Windows 11 optimization and supporting third-party devices, Microsoft is positioning itself to capitalize on the growing popularity of handheld gaming while continuing to invest in its long-term console and cloud ambitions. This strategic agility will be key to their success in the years to come.

Tags: Microsoft, Xbox, Handheld, Gaming, ASUS, Project Kennan, Portable PC, Phil Spencer, Xbox Series, Gaming device, Windows 11, SteamOS

Source: https://www.eurogamer.net/microsofts-xbox-handheld-reportedly-sidelined-as-it-focuses-on-third-party-portable-devices