The first Xbox handheld might not come from Microsoft

It took a few years of dealing with poorly optimized handheld PCs, but Windows Central reports Microsoft may finally be working on an Xbox handheld. The company could announce an Xbox-branded portable device as early as this year, though it sounds like it won’t come from Microsoft directly.

Instead, the company is partnering with a PC maker already working in the gaming space to build a handheld, Windows Central writes. The device, codenamed “Keenan,” will feature Xbox design elements, an “official Xbox guide button” and will likely run Windows 11. Given the clunky experience of navigating Windows on the handhelds you can buy today, the real hope is that Xbox’s take will include a launcher or new way of using the desktop OS that’s fit for a controller instead of a mouse. The big advantage SteamOS has over Windows is that you never have to interact with a desktop environment if you don’t want to.

These rumored plans might line up with what Microsoft’s VP of “Next Generation” Jason Ronald shared at an AMD and Lenovo event from CES 2025 called “The Future of Gaming Handhelds.” According to The Verge, Ronald said that Microsoft wants to bring “the best of Xbox and Windows together.” The company hopes to simplify Windows and make it using it more console-like for handhelds. “I think we’ll have a lot more to share later this year,” Ronald said.

Phil Spencer, CEO of Microsoft Gaming, has expressed interest in handheld devices before and said the company was experimenting with prototypes. It seems like at least for now, though, Microsoft is borrowing Valve’s approach and making a handheld-friendly version of its operating system available for other PC makers to use.

That doesn’t mean there won’t be a first-party handheld in the future. Windows Central‘s report mentions that there’s a successor to the Xbox Series X, new internet-connected controllers and an official Xbox gaming handheld, all tentatively slated for 2027.