Microsoft has reportedly pushed back the Xbox handheld as it prioritizes making Windows 11 better for gaming on the go

The rumors of an Xbox handheld have been floating around for some time now, with the rumor evolving into "actually we're getting two" as Asus teased its own one (that is basically just a new Asus ROG Ally, but I digress) apparently known as Project Kennan. Meanwhile Microsoft continues to work on its own… or rather was as apparently the company has since put the idea on hold.

Windows Central (which broke the news of the handheld earlier this year) has reported that Microsoft has put the Xbox handheld on the backburner for now. While the company apparently still wants to make the device in the future, it's reportedly chosen to prioritize improving the gaming performance of Windows 11 when it comes to other devices, like the so-called Project Kennan from Asus.

Furthermore, Windows Central speculates that SteamOS being far better suited to gaming handhelds may have informed these decisions.

Again, this won't be the end of the first-party Xbox handheld, as Windows Central claims that its sources have suggested that Microsoft is still investing a lot into developing its very own tech, but apparently it's just not the priority for now, and resources are being allocated appropriately.

Asus's Project Kennan is still apparently poised to release later this year, so an official Xbox handheld should be in people's hands sooner than later, but just not one made by Microsoft itself.

In the meantime, be sure to check out our roundup of the best Xbox Series X games you can play today.