• 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 SteamOS handheld gaming PC – and it appears as though the revelations of the SteamOS version outperforming the Windows 11 model in gaming may have pushed Microsoft to change its priorities.

Windows 11 is yet to feature a ‘handheld’ mode or anything that focuses on portability to help streamline the handheld gaming experience. While software like Armoury Crate (alongside tools like Xbox Game Bar) has helped handheld gamers with quick game access and other necessary TDP adjustment settings, it’s had a hard time matching up to the SteamOS experience for gamers.

It’s not exactly clear whether the codenamed handheld, Project Kennan, will come in the form of a long-awaited Asus ROG Ally successor. However, it’s clear that Valve’s success has lit a fire under Microsoft to take handheld gaming seriously – and rightly so, as many would argue.


Analysis: Gamers, this is exactly why voicing your frustrations matters

Xbox logo on a green background

(Image credit: Microsoft)

If there’s anything Microsoft’s reported actions highlight, it’s that voicing your complaints and frustrations does indeed work. I say this because I can almost guarantee that without the praise of SteamOS and the recent criticisms of Windows 11, Microsoft wouldn’t lift a finger.

The same case applies to the sudden rise of game prices. I’m still very concerned and adamant about shooting down $80 game prices, since Nintendo kick-started it. Instead of just ‘accepting it’ and letting it become a precedent, let your displeasure about it be known as much as possible.

Microsoft, Sony, and Nintendo are all more than capable of doing better and being reasonable with consumers, and the only thing I’ve ever seen work is protesting against measures that are out of line.

I could go on about Sony’s PS Plus and Microsoft’s subscription services, just for console gamers having access to multiplayer, and just how absurd that truly is – but ultimately, it’s an example of what happens when we let things slide or become normalized.

Regardless, I’m pleased to hear that Valve has essentially been a catalyst for Microsoft to take handheld gaming and Windows 11 optimization more seriously, because it’s been needed for a very long time now.

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