Microsoft has partnered with Asus to build a handheld console that will run Xbox games on Windows, according to reporting by The Verge. The device, codenamed “Kennan,” will use Windows as its operating system and present an interface inspired by Xbox.
The collaboration leverages Asus’s experience with its own portable gaming hardware, the ROG Ally; Asus is expected to be one of the manufacturers for the new handheld.

Project Bayside aims to unify Xbox and Windows experiences
The handheld is part of a broader Microsoft initiative, referred to internally as “Project Bayside,” intended to deliver a consistent Xbox-style interface across multiple device types, including portables. The effort is aligned with Microsoft’s objective to unify the Xbox and Windows ecosystems so a shared library of games is accessible on both consoles and PCs.
As part of this push, Microsoft is also working toward a single games store for Windows and Xbox and plans to simplify development processes so titles run smoothly across portables, consoles and PCs.
Timing: Kennan might arrive sooner, but larger Xbox handheld could come later
While Microsoft has hinted that Kennan could launch later this year, The Verge notes the project remains in progress and a release could be delayed. Separately, Microsoft is taking steps to make older Xbox titles playable on PC to support the new portable efforts.
The report clarifies Kennan is not the same as the dedicated Xbox handheld Microsoft previously confirmed it is developing. That separate Xbox portable has a later target timeframe: its arrival may not occur until 2027, a timeline reiterated by Microsoft Gaming CEO Phil Spencer.

What this means for portable gaming
These developments indicate Microsoft is expanding into portable gaming by combining its Xbox software experience with Windows and working with hardware partners like Asus. The strategy aims to provide players with integrated access to games across devices while easing cross-platform development for studios.


