Microsoft is reportedly developing its first handheld gaming console for Xbox, codenamed “Keenan.” If the rumors are true, the device could launch this year, putting Xbox in direct competition with the Nintendo Switch, Steam Deck, and ASUS ROG Ally. This move could be a big deal for gamers. Xbox has focused heavily on cloud gaming, but a dedicated handheld console would offer a smoother experience without needing a constant internet connection. It could also make Xbox Game Pass even more attractive by giving players a way to access their games anytime, anywhere.
Built with a PC Gaming Partner
Unlike Sony’s PlayStation Portal, which relies on remote play, the Xbox handheld (codenamed “Keenan”) is expected to be a full-featured gaming device. Reports suggest Microsoft is working with a PC gaming company to develop it. This means the hardware will likely match Xbox’s high-quality design standards.
One of the biggest rumors is that the device will run on Windows 11. If true, this could give it a massive advantage over competitors. Players wouldn’t just have access to Xbox Game Pass but also to platforms like Steam, the Epic Games Store, and GOG. This flexibility could make it one of the most versatile gaming devices ever.
Why Now? The Rise of Handheld Gaming
Handheld gaming is more popular than ever. The Nintendo Switch has sold over 139 million units, proving the demand is there. Meanwhile, devices like the Steam Deck and ROG Ally have shown that gamers want portable hardware with serious power.
Xbox has already invested in cloud gaming through Game Pass Ultimate. But streaming isn’t always reliable, and gamers want a device that works anywhere. A handheld console would solve this problem by letting players download and run games directly, no Wi-Fi needed.
What About the Next Xbox?
Along with the handheld, Microsoft is reportedly developing a successor to the Xbox Series X. Expected around 2027, this next-gen console will likely integrate even more with Windows, making it easier for developers to bring PC games to Xbox.
There are also rumors that Microsoft could allow third-party game stores, like the Epic Games Store and GOG, to run on its consoles. If true, this would be a major shift in the gaming industry. Microsoft has been focusing on cloud gaming and AI-powered features, and these are expected to play a big role in its next console generation.
Will Xbox Confirm the Handheld Soon?
Microsoft has not officially announced the handheld, but Xbox head Phil Spencer has hinted at interest in portable gaming. He previously suggested that a dedicated handheld was still years away, which makes these rumors surprising.
If the reports are accurate, Microsoft could reveal the device at an upcoming Xbox event. Big gaming showcases like Gamescom 2025 or the Summer Game Fest would be the perfect time to make the announcement.
What This Means for Gamers
If Microsoft really is launching “Keenan” for Xbox, it could be a game-changer. Xbox fans would finally have a way to take their games on the go, without needing to stream them. If the device runs Windows 11, it could also work as a portable PC, supporting more than just Xbox titles.
A move like this would push handheld gaming forward, offering players more options and changing how we think about console gaming. Microsoft has the chance to set a new standard for portable gaming—if they get it right.
