Last year, Microsoft Gaming’s CEO, Phil Spencer, hinted that we wouldn’t see an Xbox gaming handheld for quite a while. But just because Microsoft isn’t in a rush doesn’t mean other manufacturers aren’t jumping into the game—with Microsoft’s blessing. Word from The Verge suggests that Microsoft is planning to merge Xbox and Windows into a seamless platform, with Asus on board as a lead partner in this initiative. Asus is reportedly busy with Project Kennan, which is the codename for a gaming handheld possibly hitting the market soon, riding the wave of Microsoft’s unified platform strategy.
While Asus is focused on the hardware front, Microsoft is working on Project Bayside, designed to make the Xbox user interface consistent across various devices. This framework, which runs on Windows with an Xbox-inspired overlay, will likely power the gaming handheld from Asus. It seems that Kennan and Bayside are joint efforts by Microsoft to blend the best features of Xbox and Windows into a single gaming experience.
Jason Ronal, Microsoft’s VP for Xbox gaming devices and ecosystem, told The Verge earlier this year that this integration was a major focus, with expectations set for notable progress by year’s end. Although these developments are exciting, we haven’t seen an official announcement or teaser from Microsoft or Asus just yet.
The Steam Deck’s launch in 2022 by Valve kicked off a revival of interest in handheld gaming consoles. While Microsoft seems to have an edge over the Steam Deck in terms of versatile options, given that most top-tier PC gaming handhelds currently run on Windows 11, there are new developments to consider. Lenovo has introduced the Legion Go S, which is poised to use SteamOS in May. The Windows 11 version of this device is presently available for $729, but the SteamOS iteration will be more budget-friendly at $499. Lenovo plans to release a cheaper version of the Windows model around the same time for $599, yet the cost savings of the SteamOS version may sway many gamers to choose it instead.
This might have caught Microsoft’s eye, especially since a trusted OEM partner is adopting a different OS. Valve seems ready to challenge Windows with SteamOS in the handheld arena. Given Microsoft’s ongoing competition with the PlayStation 5, the last thing it wants is increased pressure from Valve’s SteamOS in portable gaming. To retain its position, Microsoft needs to ensure that Xbox and Windows continue to be the go-to system for handheld gaming enthusiasts.