EXCLUSIVE: Xbox's First-Party Handheld Sidelined as Microsoft Doubles Down on 'Kennan' and Windows 11 PC Gaming Optimization

 


In a strategic pivot, Microsoft has temporarily shelved its in-house Xbox handheld console, codenamed "Pembrooke," to focus on enhancing Windows 11's performance for third-party gaming handhelds. This decision underscores Microsoft's commitment to optimizing the gaming experience on Windows platforms and supporting partner-led initiatives like the Asus-powered "Project Kennan."

🛠️ Why the Xbox Handheld Was Put on Hold

Microsoft's internal development of a dedicated Xbox handheld was initially set to rival devices like the Nintendo Switch 2 and Valve's Steam Deck. However, the company has decided to pause this project to concentrate on refining Windows 11 for handheld gaming. Challenges such as inefficient power management, suboptimal controller input handling, and poor battery life have hindered the performance of Windows-based handhelds, leading to a user experience that lags behind competitors.

Phil Spencer, Microsoft's gaming chief, acknowledged these shortcomings, stating that Windows' design wasn't initially optimized for handheld devices. To address this, Microsoft is working on integrating Xbox's user interface and controller-friendly features into Windows 11, aiming to deliver a more seamless and efficient gaming experience on portable devices.

📱 Enter 'Project Kennan': A Collaborative Approach

While the in-house Xbox handheld is on hold, Microsoft is not stepping back from the handheld gaming market. The company has partnered with Asus to develop "Project Kennan," a Windows-based handheld device that combines Xbox's gaming ecosystem with the versatility of a full Windows PC. Expected to launch later in 2025, Kennan will feature a compact, controller-friendly interface and support for multiple game launchers, including Steam and Epic Games Store.

Kennan aims to bridge the gap between console and PC gaming, offering users access to a broader range of games and services. However, it's important to note that Kennan will not support the full Xbox game library natively. Only titles that are part of the Xbox Play Anywhere initiative will be available, and Xbox Cloud Gaming will provide access to additional titles for Game Pass Ultimate subscribers.

⚙️ Windows 11: The Backbone of Future Handheld Gaming

Microsoft's focus on optimizing Windows 11 for handheld devices is a crucial aspect of its strategy. The company is working to streamline the operating system, reducing unnecessary background processes and enhancing power management to improve battery life and performance on portable devices. Additionally, the Xbox app is being updated with a new compact mode to provide a more user-friendly interface on smaller screens.

These improvements are not only beneficial for Kennan but also for other Windows-based handhelds, ensuring a more consistent and enjoyable gaming experience across various devices.

🔮 Looking Ahead: A Unified Gaming Ecosystem

Microsoft's dual approach—enhancing Windows 11 for handheld gaming and collaborating with partners like Asus on Project Kennan—reflects a broader vision of a unified gaming ecosystem. By integrating Xbox's gaming services with the flexibility of Windows, Microsoft aims to provide gamers with more choices and a seamless experience across devices.

As the gaming landscape continues to evolve, Microsoft's focus on software optimization and strategic partnerships positions it to remain a significant player in the handheld gaming market. The success of Project Kennan and the improvements to Windows 11 will likely set the stage for future developments in Microsoft's gaming hardware and services.

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