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At this stage, I'd be dumbfounded if an Xbox handheld doesn't happen, but new rumors suggest the first device won't be a portable console. Instead, Microsoft looks set to create a Xbox-flavored handheld with a company like Asus, MSI, or Lenovo. While that's a bummer for anyone hoping for a palm-friendly Series S, it could be a massive win for Windows 11 as an on-the-go platform.
The latest Xbox handheld round of rumors comes from Windows Central, as a new report claims a new device dubbed codename "Keenan" is set to arrive in 2025. Rather than entering the best gaming handheld race as an entirely new system, it instead looks to be a collaborative effort with an OEM, meaning it'll likely closer resemble an Asus ROG Ally with themed buttons rather than something entirely new.
Microsoft has allegedly stated that project Keenan will look "unmistakably Xbox" and will seemingly feature elements like a guide button and similar "design sensibilities." Simply put, if you picture a portable in your head with those familiar colored face buttons, you probably won't be far off, but I'm more interested in the fact it'll apparently "almost certainly" run Windows.
Let's be real, Microsoft is dragging its feet when it comes to Windows 11 handheld optimization. It did drop some changes to the Game Bar last year that makes the UI feel a bit friendlier, but systems like the new Lenovo Legion Go S really fall short due to the operating system. That's where the new Xbox handheld comes in, as the current rumors are making me think that a big update could arrive alongside the portable PC.
For starters, the ball will be in Microsoft's court when it comes to software bloat. I'd like to think the PC giant would whip up a bloat-free Windows 11 handheld edition at the very least. I mean, I highly doubt anyone is going to use tools like OneDrive on a device like this, so seeing some of the packaged apps streamlined would be a start.
The other biggie is finding a way to make Windows 11 easier to navigate without relying on a third-party middle-man app. I've yet to use a management program that isn't flawed in some sort of a way, and while Valve's Big Picture mode makes for a nice way to pretend every device is a Steam Deck OLED, I'm willing to bet Microsoft is cooking up something that doesn't require overlays.
Alternate modes aren't something Microsoft has played around with much since the dark days of Windows 8 live tiles. But, the core idea of having a touch-friendly mode that's designed to work with specific devices makes sense in the context of handhelds. You're still retaining full PC compatibility, but having a restructured view of the OS that isn't going to randomly freak out and abandon you on a desktop that's near impossible to touch-navigate without fumbled presses would make a huge difference.
It'd also make for a sensible place to better integrate the Game Pass and store features, in turn feeling into that "everything is an Xbox" sentiment. Rather than feeling like a secondary place you need to go to download your subscription games, the handheld could instead make it your primary home for PC downloads, which is naturally going to help the brand's presence in the ruthless world of portable rigs.
I'd still take any Xbox handheld rumors making the rounds right now with a big old grain of salt. Microsoft's involvement in the portable gaming scene right now feels pretty experimental by nature, and even if we do get a branded device by a well known manufacturer, it might not to anything spectacularly different compared to current contenders.
What I am hoping is that Windows starts evolving to become more handheld-friendly as a result of project Keenan. It's probably a good time to note that it's widely believed Windows 12 could show up at the end of the year or early 2026, so it could be that the new portable PC is set to arrive at the same time as Microsoft's latest operating system.
Already got Valve's handheld? Swing by the best Steam Deck accessories and best Steam Deck dock for excellent add-ons. Alternatively, check out the best retro consoles if you need something that'll run the classics.
