A big battleground in the world of gaming right now is handheld consoles. There’s the Nintendo Switch 2, the Steam Deck, countless other portable PC devices, and there are even rumors of a PlayStation handheld coming soon. According to a new report, the rumored Xbox handheld may take longer to arrive than initially expected.

Rumors from Windows Central say development of an Xbox handheld has been put on pause. The console has been heavily rumored for the last year, and there was even a teaser directly from Microsoft’s Phil Spencer. A previous rumor said Microsoft was eyeing a handheld launch later this year.

The most recent leak says Microsoft has switched its attention to improving Windows 11 gaming performance for third-party devices. Asus is rumored to be working on its own handheld running Windows 11. That device is codenamed “Project Kennan”, and this news says Microsoft wants to finesse the platform ready for its launch.

This comes as SteamOS has gathered momentum in recent months. The software first powered the Steam Deck and is now rolling out to alternatives. Earlier this month, a version of the Lenovo Legion Go S was the first third-party console to run on SteamOS.

SteamOS is also now available for many other devices, including the original Asus ROG Ally that has seen performance improvements with the software. Both battery life and processing power appear to be better in initial testing, which is likely worrying for Microsoft.

According to Windows Central, the upcoming Asus console is still aiming to release later this year but it’s unclear on an exact timeframe. If that’s a success, it may be that Microsoft then turns its attention back to an official first-party Xbox alternative to help showcase what Windows 11 can do.

This latest report also says development at Microsoft on an Xbox Series X successor continues with the company eyeing a 2027 launch for its next-gen console.

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About James Peckham

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I’ve written tech news for over a decade, and as a Reporter at PCMag, I cover the latest developments across the gadgets and services you use every day. Previously, I worked for Android Police, TechRadar, and more.

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