Microsoft reportedly collaborating with OEMs on its Xbox handheld

Microsoft is reportedly collaborating with a PC gaming OEM to create an Xbox-branded gaming handheld, currently referred to as "Keenan." According to Windows Central, the device will showcase a unique Xbox design, featuring an official Xbox guide button and brand-aligned aesthetics, with a potential release planned for late 2025.

What do we know about Microsoft’s new handheld for Xbox?

A mockup image shared by Windows Central indicates that the handheld may resemble the ASUS ROG Ally, although the specific OEM involved in the initiative remains undisclosed. Given this collaboration, it is expected that Keenan will serve more as a PC gaming system rather than a standalone Xbox console. The device is rumored to operate on a full version of Windows, incorporating the Microsoft Store and PC Game Pass, while also being compatible with other platforms like Steam.

One of the main focuses will be the incorporation of Windows 11’s "device-aware" capabilities to enhance the gaming experience on handheld devices. Furthermore, it's anticipated that Keenan will minimize the impact of third-party OEM bloatware, a common drawback in competitors like the Lenovo Legion Go and ASUS ROG Ally. Microsoft may also include features within the Xbox Game Bar to manage power settings, fan speeds, and other system controls, improving usability for users navigating with a controller.

It appears that future Xbox consoles will be increasingly aligned with Windows, streamlining the process for developers porting games from PC. They will also maintain backwards compatibility with older Xbox games. Xbox president Sarah Bond previously highlighted a dedicated project team aimed at facilitating both backwards and forwards compatibility for existing Xbox titles.

Xbox lead Phil Spencer has hinted at providing support for third-party storefronts on Xbox hardware, including platforms like the Epic Game Store, GOG, itch.io, and Steam. There are also indications that AI will play a role in the next generation, as well as enhancements to Xbox cloud capabilities. Additionally, Microsoft's new controllers will feature direct-to-cloud connectivity, allowing players to switch between devices more seamlessly.