Xbox Handheld Console Project Suspended

Microsoft’s long-standing Xbox handheld console project has been temporarily halted by an unexpected decision. Although the hardware development of this portable device, codenamed “Keenan”, has been completed, the production process has been suspended due to deficiencies in the software. The company has prioritized improving game performance in Windows 11.

The Xbox Handheld Console Was Compatible with the Xbox Ecosystem

According to the first information that emerged in March, Microsoft was aiming to release a new Xbox handheld console in 2025. This device attracted attention with features such as Microsoft Store, PC Game Pass, and Steam support. While the hardware of the model developed in collaboration with Asus is ready, it was stated that further optimization was required on the software side.

According to Jez Corden from Windows Central, Microsoft has put both the “Keenan” project and the first-party handheld console project, which is scheduled to be released in 2027, on the back burner. The main reason for this change was cited as the need to improve the gaming experience on portable devices with Windows 11.

Corden emphasizes that Microsoft has not completely abandoned the handheld console project. The company still wants to make a strong entry in this area, but it thinks that the software side needs to be strengthened first in order for the final product to meet expectations. For this reason, the Xbox and Windows teams have directed their resources to software development.

On the other hand, development of the successor to the Xbox Series X continues. It is stated that there are no layoffs within the company. This shows that there has been a strategic change of priorities on the Xbox side, but the projects have not been completely canceled.

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