The market for handheld consoles has exploded in the last few years, disrupting what was a pretty serene period of domination by the Nintendo Switch. Now there are Steam Decks, PlayStation Portals and much more, with the Switch 2 right around the corner itself.

Microsoft reportedly has plans set in motion to release its next Xbox in 2027. Along with the new console, there might be another handheld with this one being a proper Xbox handheld. What might happen is that the handheld is a lower-powered console, like the Xbox Series S, and the new home console will be more like the Xbox Series X.

Asus looks increasingly tipped to be a hardware partner for the Xbox handheld, but I’d want more than just a rebranded ROG Ally.

Those rumors about Microsoft making it own Xbox handheld may have been hasty, but we could see the Xbox version of SteamOS instead.

I understand the Xbox work that has hit the headlines this week is actually called Project Kennan, not Keenan. I’m told that Kennan is the codename for a handheld that is being manufactured by Asus, and it’s part of a larger effort from Microsoft to unify Windows and Xbox towards a universal library of Xbox and PC games.

Microsoft is prepping a new handheld version of its Xbox console that could be launched later this year. Meanwhile, plans are afoot to replace the existing Xbox Series S and X consoles in 2027.

I play most of my games on an Xbox plugged into a 65-inch OLED TV in the living room. Despite this comfy setup, I caved and finally bought a Steam Deck in late 2024, and I’m so happy that I’ve started padding my neglected Steam library once again.

A handheld device with the Xbox name might be releasing this year, but it just doesn't sound like something with the power to shake up the market.