Phil Spencer, the head of Microsoft Gaming, hinted late last year that we wouldn’t be seeing an Xbox gaming handheld for quite some time. Yet that’s not stopping other manufacturers from diving into the realm with Microsoft’s nod of approval. According to insider information from The Verge, Microsoft is on a mission to bring Xbox and Windows closer together, and Asus is jumping on board as a key partner in this ambitious venture. Word on the street is that Asus is developing a gaming device, known internally as Project Kennan, which could hit the market this year and might significantly benefit from Microsoft’s strategic fusion of platforms.
Alongside Asus’s hardware innovations, Microsoft is busy crafting Project Bayside. This framework aims to create a unified Xbox user interface across multiple devices, essentially laying an Xbox-style skin over Windows to power the new handheld from Asus. Projects Kennan and Bayside illustrate a larger push by Microsoft to merge the best of what Xbox and Windows have to offer.
Jason Ronal, who serves as the VP of Xbox gaming devices and ecosystem, shed some light on this integration plan earlier this year in a chat with The Verge. He mentioned that the company is concentrating hard on this integration, with potential results expected to emerge later this year. While these whispers are intriguing, we’re still in the dark without any official word or teaser from Microsoft or Asus.
When Valve launched the Steam Deck in 2022, it breathed new life into handheld gaming consoles. Microsoft still enjoys a certain edge, though, given that most top PC gaming handhelds have been powered by Windows 11. Yet Lenovo is making strides to shift the balance with their Lenovo Legion Go S, which can run on SteamOS. This versatile device is available today with Windows 11 for $729, and come May, the SteamOS version is expected to be a more wallet-friendly choice at $499. Lenovos’s plan to offer a more affordable Windows 11 version at $599 around the same time could tempt budget-conscious gamers to opt for the SteamOS alternative due to the $100 price difference.
This pivot by Lenovo likely set off alarm bells at Microsoft, particularly since one of its long-standing partners is now leaning toward a popular alternative OS in May. Additionally, it signifies that Valve is mounting a challenge to Windows with its SteamOS. With Microsoft already facing tough competition from the PlayStation 5 in the console wars, it certainly won’t want Valve’s SteamOS to start nipping at its heels in the handheld market as well. To maintain its slice of the pie, Microsoft needs urgent action to ensure Xbox and Windows remain the go-to operating systems for handheld gaming enthusiasts.