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Microsoft has halted development of its Xbox portable gaming platform, according to a report. The native Xbox portable, which was previously slated to be included in the company's next generation of consoles, has been pushed back. The Redmond business is apparently focusing on optimizing Windows 11 for portable consoles so that it can compete with Valve's SteamOS, which provides superior performance and battery life. Other forthcoming consoles, such as the Xbox-branded Asus device (codenamed Project Kennan), are said to be unaffected by Microsoft's decision.
Microsoft shifts focus to Windows 11 under threat from SteamOS
According to Windows Central, Microsoft's internal Xbox portable device has been shelved, indicating that it may not be available in 2027 with Microsoft's next-generation Xbox consoles. The first-party handheld is not the same as other future portable consoles, such as Asus' Project Kennan, which is still set to launch later this year.
The business intends to concentrate on improving Windows 11 for handheld consoles, which means that future third-party handhelds may have a more streamlined version of Microsoft's desktop operating system. In our studies of previously released handhelds, we discovered that some of the most serious concerns with Windows operating on these devices were poor battery life, navigation challenges, and software upgrades.
Microsoft's choice to focus on Windows 11 for handhelds may have been influenced by the SteamOS' extension beyond the Steam Deck. Earlier this year, Lenovo introduced the Legion Go S, which outperforms the Steam Deck and runs Valve's operating system. SteamOS is also scheduled to be released on comparable portable devices in the future.
Microsoft will be concerned with more than just SteamOS-powered devices, as the Nintendo Switch 2 is just around the bend. The Japanese company's handheld is set to launch in select areas in June, competing with existing portable consoles.
The Redmond company's work on optimizing Windows 11 for handhelds may improve the overall experience of using these devices. According to recent speculations, Asus plans to introduce the Project Kennan console later in 2025. The gadget was recently discovered in a listing on the US FCC website, providing an excellent look at its appearance.
According to the source, Microsoft's first-party handheld may have been capable of running Xbox games, and the corporation continues to seek to release a native handheld. It's unknown if this gadget will be released in 2027 or 2028, when the company's next-generation consoles are slated to arrive.
