Aiming to fix Windows 11 performance on portable devices, Microsoft delays its in-house handheld, raising questions about its hardware future.
At least for now, Microsoft doesn’t seem to be going as hard after its goals in the handheld gaming market. A new rumor has been circulating stating that the company has halted development on the long-rumored Xbox-branded handheld. It was supposed to come out at the same time as the next-generation Xbox console, maybe as early as 2027.
People are calling this move a “temporary pause” with considerable doubt. It’s said that Microsoft wants to improve Windows 11 for handheld devices before it purchases new hardware. Currently, handhelds that run Windows aren’t as advanced as competitors like the Steam Deck, which utilizes Valve’s own SteamOS to enhance the portable experience with smoother performance and better optimization.
It makes sense from a strategic perspective. If Microsoft wants to support a strong platform for handheld games, the OS that runs on top of it needs to work well in that size. The company aims to establish a solid foundation for future hardware by first enhancing Windows 11. However, the news has led people to doubt.
There is still doubt, despite the explanation making sense. Many fans and experts are wondering if this break means that Microsoft will make significant changes or even stop making hardware altogether. Microsoft has made changes to its hardware and platform plans in the past. Many people remember the recent change in Xbox’s publishing strategy.
Phil Spencer said at first that only four Xbox-only games would be coming to PlayStation, but later, he changed his mind and said that the list would include a lot more games, saying that the changes were made because of “experiments” that “went well.”
Third-party manufacturers are moving forward in the meantime. Some companies, such as Asus, are still developing their own Windows-based handhelds. In late 2025, a new model is scheduled for release. It appears that these efforts demonstrate that, even though Microsoft may be slowing its own device development, the Windows handheld ecosystem continues to grow despite this.
The recently leaked Project Kennan device is one of these projects that is getting a lot of attention. Although there are few details, early reports suggest that it may be powered by AMD’s Ryzen Z2 Extreme chip, which would provide a significant performance boost. For now, the specs only show a four-core CPU, 16GB of RAM, and a power draw of up to 20 watts. These could change as development goes on, though.
It’s still not clear if Project Kennan is connected to Microsoft or a different company. Even so, it has started new conversations about the future of Windows handheld gaming systems and Microsoft’s place in that future.
Some people also believe that more information may be revealed at the Xbox Games Showcase on June 8. There is still doubt, despite the explanation making sense. Many fans and experts are wondering if this break means that Microsoft will make significant changes or even stop making hardware altogether. Microsoft has made changes to its hardware and platform plans in the past.
The bigger question at the heart of this pause is whether Microsoft is gradually shifting its focus away from hardware altogether. Since the company began as a software leader and continues to excel in this area, some analysts believe this move could be a smart choice, particularly given the company’s increased focus on services like Xbox Game Pass and cloud gaming.
The Xbox handheld is no longer being manufactured. It remains unclear whether it will be ready in time for the next generation of consoles or be quietly put on hold for good. But one thing is for sure: the race for portable games is heating up, with or without Microsoft in the lead.
