Xbox handheld reportedly delayed so Microsoft can focus on making Windows handhelds compete with SteamOS

• Microsoft is reportedly sidelining its Xbox native handheld in favor of Windows 11 handheld gaming PC optimization
• The 'Project Kennan' handheld collaboration with Asus is still underway
• It appears to be a direct response to Valve's SteamOS success after it became available for non-Steam Deck handhelds

Valve has recently taken the spotlight on handheld gaming PCs, providing SteamOS support for non-Steam Deck handhelds – and as a result, Microsoft has seemingly set aside one of its most-anticipated devices to compete with the Linux-based operating system.

According to an exclusive from our friends at Windows Central, Microsoft has reportedly shelved its Xbox native handheld momentarily, as it will now shift its focus to Windows 11's optimization for third-party handheld gaming PCs – and 'Project Kennan', a new Xbox-themed handheld in collaboration with Asus.

This comes shortly after the launch of a new Lenovo Legion Go S, an officially-licensed ...