Microsoft gears up for Xbox handheld, reportedly built by PC partner

Rather than building it in-house, Microsoft is said to be collaborating with an established PC gaming manufacturer on the project, codenamed “Keenan.” The device will feature Xbox design cues, an “official Xbox guide button,” and likely run Windows 11.

A key focus is improving the Windows experience on handhelds. Unlike the current clunky navigation, Microsoft aims to introduce a launcher or user interface optimized for controller input, mirroring SteamOS’s seamless, desktop-free gaming experience.

This aligns with comments from Microsoft’s VP of “Next Generation,” Jason Ronald, at a CES 2025 event. He stated Microsoft’s goal to “bring the best of Xbox and Windows together,” simplifying Windows for handheld use and making it more console-like. “I think we’ll have a lot more to share later this year,” Ronald teased.

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Microsoft Gaming CEO Phil Spencer has previously expressed interest in handhelds and confirmed prototype experimentation. However, for now, Microsoft appears to be adopting Valve’s strategy, providing a handheld-optimized Windows experience for other PC makers.

While a first-party Xbox handheld isn’t imminent, Windows Central’s report suggests it’s on the horizon. A successor to the Xbox Series X, internet-connected controllers, and an official Xbox gaming handheld are reportedly planned for 2027.