Xbox puts its official handheld console on the back-burner to make way for ASUS

Microsoft's plans for a dedicated portable console have slightly changed, with a recent report from Windows Central (WC) stating that Microsoft's own Xbox-labeled handheld has now been put on the back burner.

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It should first be noted that the device we are discussing here isn't the Xbox and ASUS portable console codenamed "Project Kennan," that one is still on track for release, possibly unveiled at an upcoming Microsoft event.

The console that has now been shelved is strictly Microsoft's own internal Xbox first-party handheld, with Windows Central reporting that while there are three prototype devices currently in development, the release plan has now been put on the back burner for prioritization on Windows 11 gaming performance, specifically for devices such as ASUS's Project Kennan.

Sources have informed the publication that Microsoft announced the news of the plan shifting today, and that a focus is now being put on third-party OEM handhelds for the time being, such as Kennan. Notably, the Xbox|ASUS handheld is slated for launch later this year, with the hardware configuration "essentially finished," according to WC.

Furthermore, the publication expects this new handheld will be among the first to use the AMD Z2 Extreme chip, with teams at Windows and Xbox now being focused on improving the user experience on the software side of the device.