It's looking like a handheld rumored Xbox handheld doesn't seem quite as interesting. Unlike PlayStation and Nintendo, Xbox has always stayed out of the handheld gaming market, traditionally focusing on head-to-head home console match-ups. In recent years, Xbox has started to push the idea of a software platform instead, expanding Xbox Game across a wide library of devices and bringing certain game exclusives to competing consoles.

While these changes have made it possible to play some Xbox titles on handheld devices via cloud streaming, things haven't moved as fast on the hardware end. In November 2024, Microsoft Gaming CEO Phil Spencer confirmed that Xbox is working on a potential handheld system. The process he described, however, suggested that it would still be years before a handheld hit the market. A 2025 release would be far ahead of those expectations, but the reported product is apparently something entirely separate from Xbox's primary explorations of handheld hardware.

Xbox’s Rumored 2025 Handheld Is A Steam Deck Competitor

PC Gaming With The Xbox Name

According to reporting by Tom Warren of ASUS ROG Ally and Lenovo Legion Go, each attempting to nail the difficult balance between power and price necessary to make PC gaming on the go appealing.

Although initial reports referred to the Xbox handheld as Project Keenan, Warren notes that the proper project name is apparently Kennan.

The 2024 Xbox handheld is reportedly another ASUS product, so it's closer to a new ROG Ally model than, say, an Xbox take on the PlayStation Vita. That's not necessarily a bad thing, as Xbox's involvement could still result in a strong product. One problem that's plagued Steam Deck competitors is the difficulty of achieving a experience that feels as polished as Steam Deck's SteamOS, and leaning on custom Xbox software could provide a solid alternative. Valve did open up SteamOS as an option that competitors can offer, though, so other custom software isn't strictly necessary.

Another potential advantage of the collaboration is that the brand might lower the price rather than raise it. Microsoft could more easily afford to take a loss-leader approach with a product that doesn't quite turn a hardware profit or makes only narrow margins. Like Valve and the Steam Deck, Microsoft has a vested interest in hooking more people into a software ecosystem, something that isn't as applicable to ASUS on its own.

A Revised Take On The ROG Ally Isn't Anything New

The Xbox Brand Has Value, But It Doesn't Change Everything

While ASUS Xbox handheld is a solid proposition, it's not something that I can see myself getting excited about. Even if it does offer some advantages over its competitors, the inherently tight margins of the handheld PC gaming market make it unlikely that any single product will leave the competition in the dust. Xbox brand or no Xbox brand, it's ultimately just another option in a scene that's already covered the bases, and each new device feels further removed from the innovation that defined the Nintendo Switch or even the Steam Deck.

While the ultimate details of the reported device could end up surprising me, it currently feels like a proposition defined more by brand value than any significant jump in experience. Some people who haven't previously paid much attention to handheld gaming PCs will take an interest in an Xbox one. If you offered me the choice between a hypothetical ASUS ROG Ally 2 and an ASUS Xbox handheld with the same hardware and overall feature set, though, I wouldn't have any real preference.

An ASUS ROG Ally successor would have almost certainly shown up regardless; it just happens to have a new name attached to it. I'd rather see ASUS wait several years to deliver a big leap in power and value than follow up so quickly with a pivot to Xbox branding, although both companies may simply be taking advantage of the hole left by Valve's more patient approach to a Steam Deck sequel. I don't think I'll be tempted by a Steam Deck alternative until that leap happens, and those who already own one may be even more reluctant to upgrade.

Xbox Might Still Have Something More Exciting In The Works

A True Xbox Handheld Is Still Potentially In Development

At the end of the day, I'm simply not the target audience for the Xbox ASUS handheld, and perhaps those who love the Xbox ecosystem will be more enthusiastic. Regardless, there's nothing to suggest that the entire future of Xbox's handheld forays lies in the reported ASUS device. If Xbox does continue to work on the handheld explorations that Spencer mentioned in 2024, we likely won't see those until the next console generation, but it could offer a more unique take on the concept than another PC gaming device does.

As much as I love the Nintendo Switch and see the value in products like the Steam Deck, I'd be particularly excited to see more diversity in the way that major companies approach the handheld market. The pocketability of Nintendo's older handhelds and the more manageable budgets afforded to their games occupied a valuable niche that's fallen by the wayside, and considering how many times Nintendo has now reinvented the wheel for portable devices, I'm sure that there's just as much room to experiment with new ideas as there is to return to old ones.

Whatever Xbox might ultimately release, I still don't expect it to diverge too much from the idea of the Steam Deck, as compatibility with console Xbox titles is likely a bigger priority than building a unique handheld ecosystem. That doesn't mean it couldn't be genuinely creative, though, and I'm interested to see what a 100% Xbox take on the idea would be. For now, I'm afraid Xbox's rumored 2025 handheld won't do enough to make it stand apart from everything else already on the market.

Source: The Verge