More Information on Asus’ Upcoming Xbox OEM Handheld, “Project Kennan,” Revealed

Microsoft is stepping into the world of portable gaming with a new device called Project Kennan. This handheld, developed in partnership with ASUS, is expected to hit the market later this year. Unlike a traditional Xbox console, it’s a Windows-based PC gaming device with a design twist that nods to Xbox fans. Here’s what we know so far.

Project Kennan is being built by ASUS, the company behind the popular ROG Ally handheld. Sources confirm it will mix ASUS’ familiar style with Xbox-inspired features, like bigger grips and a dedicated Xbox guide button. It’s not clear if this will replace a potential ROG Ally 2 or stand as a separate product tied to Microsoft’s gaming brand. Either way, it’s set to feel distinct yet familiar to ASUS handheld users.

The device runs on Windows, not the Xbox operating system. That means it won’t natively play most Xbox console games. Instead, it relies on the Xbox app, Xbox Play Anywhere titles, and Xbox Cloud Gaming for Microsoft’s gaming catalog. “For those who were hoping Kennan would play Xbox games, I’m sorry to report that this is a tried-and-true Windows PC in essence,” one insider noted. However, it will support other platforms like Steam, Battle.net, and Epic Games Store, making it a versatile gaming machine.

The exact cost of Kennan isn’t locked down yet. Global trade issues, including new U.S. tariffs, could shake up pricing for tech like this. Still, early estimates suggest a base model between $499 and $599. That puts it above the cheapest Steam Deck but below the Lenovo Legion Go’s starting price. Two versions, or SKUs, are planned, though details on what sets them apart—better chips, bigger storage, or something else—are still under wraps.

Details on the hardware are fuzzy. The chipset might be AMD’s Z2 series, possibly the Z2 Go, which prioritizes power efficiency over raw performance. Some worry this could make it less powerful than the ROG Ally’s Z1 Extreme chip. “The Z2 Go has fewer cores, lower clock speeds, and is perhaps more comparable to the Steam Deck in real-world usage,” a source explained. There’s hope for a Z2 Extreme option, but nothing’s confirmed yet.

The screen size and other features remain a mystery. Microsoft and ASUS are reportedly tweaking the design to balance performance and battery life, learning from feedback on devices like the Lenovo Legion Go S.

Microsoft is pouring effort into making Windows feel more Xbox-like on Kennan. The Xbox app, Game Bar, and services are getting updates to work better on small screens and with controllers. “The device will essentially exist as a proof of concept of sorts,” one report said, hinting at user feedback shaping its future. This ties into a bigger plan called Project Bayside, which aims to blend Xbox and Windows into a unified gaming ecosystem.

Jason Ronald, VP of Xbox gaming devices, shared the vision earlier this year: “The company is merging ‘the best of Xbox and Windows together,’ with visible changes expected in 2025.” A single game store and smoother cross-platform development are also in the works, though it’s unclear if Xbox console games will ever run natively on these handhelds.

A summer 2025 reveal is possible, with a launch later in the year. Events like Microsoft Build on May 19 or the Xbox Showcase in June could be the stage for its debut. But delays aren’t off the table. “Launch windows need to be taken with a grain of salt here, due to tariffs, global macroeconomic conditions, and so on,” insiders caution. Development is ongoing, and timelines could shift.

Kennan is just one piece of Microsoft’s gaming puzzle. A next-gen Xbox console and a first-party handheld are rumored for 2027. CEO Phil Spencer has said a true Xbox handheld is still years away, stuck in prototype stages. For now, Kennan is a step toward uniting Windows and Xbox, testing the waters for portable gaming under Microsoft’s banner.

Fans are buzzing with questions. Will this handheld deliver a seamless Xbox experience? How will it stack up against rivals like the Steam Deck? More details should emerge soon as Microsoft and ASUS refine their plans.