Microsoft pauses work on Xbox handheld to focus on third-party Windows gaming devices

In a nutshell: Microsoft is reportedly pausing development of its rumored Xbox handheld to focus instead on third-party mobile gaming consoles running Windows. The device was originally expected to launch in 2027 alongside the next-generation Xbox consoles, but it has now been indefinitely delayed following a surprising shift in Microsoft's strategy.

According to Windows Central, Microsoft is not canceling its Xbox handheld entirely and intends to resume development in the future. For now, however, the company plans to "prioritize its teams to improve Windows 11 gaming performance" on third-party handheld devices.

One of the devices expected to benefit from this shift is an Asus handheld codenamed Project Kennan. The report claims the device is "essentially finished" and is expected to launch later this year. While specifications and features remain unknown, more details are likely to emerge as the release date approaches.

Microsoft's decision to focus on optimizing Windows ...