It’s been a long-standing rumor in the gaming hardware world that Microsoft might one day bring its Xbox experience to a dedicated handheld device. Recent leaks and revelations are now feeding this anticipation, with the emergence of "Project Kennan"—an ASUS-manufactured, Xbox-branded handheld PC—grabbing headlines after photos surfaced via the U.S. Federal Communications Commission (FCC) and were quickly disseminated by tech news outlets. While the device is still shrouded in some mystery, these developments provide our clearest look yet at how Microsoft views the future of Xbox gaming on the move, the collaboration with ASUS, and the broader strategic implications for the Windows and Xbox ecosystems.
Photographs uploaded to the FCC, brought to public light through VideoCardz and subsequently Windows Central, revealed not one but two handheld devices: a familiar white ASUS ROG Ally sequel and a new, black device that insiders identify as Project Kennan. The distinguishing mark—a dedicated Xbox button, with an unmistakable “X” engraving on its upper left side—has caught the most attention. On close inspection, this detail signifies Microsoft’s deep involvement in the device, even though the external casing more closely resembles ASUS’s well-known ROG Ally than any existing Xbox console aesthetic.
This button hints at a more seamless Xbox integration than we've seen on standard Windows handhelds. According to sources within Windows Central, these devices are currently being tested openly at Microsoft headquarters, suggesting the partnership is not a mere licensing deal but a coordinated push to deepen Xbox’s role within the Windows PC gaming sphere.
However, Microsoft is reportedly planning to unveil dedicated gaming-centric enhancements for Windows 11 at its annual Build developer conference on May 19. These could include UI scale adjustments, controller-friendly navigation improvements, and tighter integration with Xbox services such as Game Pass, Play Anywhere, and the Xbox Store. If confirmed, these changes would directly address many of the issues that have made handheld Windows PCs less compelling than competitors like the Nintendo Switch, Valve Steam Deck, or the PlayStation Portal.
Insiders suggest that the successor devices will aim for improved battery efficiency—a critical metric for handheld gaming—without sacrificing the computational muscle needed to run demanding PC titles. Whether Microsoft and ASUS have achieved a step-change in efficiency or merely incremental gains remains to be seen. Until official details emerge, it’s wise to treat any claims about battery life or raw performance with caution.
Additionally, thanks to its Windows 11 foundation, Kennan will have access to the vast ecosystem of PC platforms—including Steam, Epic Games Store, and more. In practical terms, this positions the device as one of the most versatile gaming handhelds to hit the market, rivaling the Steam Deck while offering much deeper hooks into Microsoft’s gaming ecosystem.
Microsoft’s new internal “Xbox PC” branding, subtly introduced during the recent Gears of War: Reloaded announcement, further suggests that Kennan could be the flagship for a broader push to make “Xbox” synonymous with not just console, but PC gaming experiences as well.
Some fans may lament that it doesn’t embrace more explicit Xbox console design cues, but ASUS’s influence is unmistakable here. This hybrid identity could serve to attract both ASUS ROG loyalists and Xbox devotees.
Given the growing overlap between traditionally discrete PC and console gaming audiences, this joint launch could reshape market perceptions and set the tone for the next wave of handheld gaming innovation.
This fits with broader moves in the industry: Sony’s PC game releases, Valve’s hardware forays with the Steam Deck, and Nintendo’s continued mobile-first approach with the Switch. By leveraging existing strengths—the Windows platform, Xbox Game Pass, and a vast developer community—Microsoft could redefine the boundaries of portable PC gaming.
It will also be worth tracking developments on the rumored “true” Xbox handheld, speculated to launch in 2027. If that materializes, it could provide native console game support and a first-party alternative to Project Kennan—potentially transforming Microsoft’s hardware business yet again.
Yet, even as the first real photos and FCC details come into focus, crucial questions remain: Will battery life, price, and the software experience rise to the challenge? Are we on the eve of a true Xbox gaming ecosystem that transcends device boundaries—or simply witnessing the next wave of “gaming PCs” with a new badge and sharper marketing?
For Windows and Xbox enthusiasts, it’s an exciting if uncertain time, and one that’s likely to shape the next generation of play—at home, and on the go.
Inside the Leak: Project Kennan and ROG Ally 2
Photographs uploaded to the FCC, brought to public light through VideoCardz and subsequently Windows Central, revealed not one but two handheld devices: a familiar white ASUS ROG Ally sequel and a new, black device that insiders identify as Project Kennan. The distinguishing mark—a dedicated Xbox button, with an unmistakable “X” engraving on its upper left side—has caught the most attention. On close inspection, this detail signifies Microsoft’s deep involvement in the device, even though the external casing more closely resembles ASUS’s well-known ROG Ally than any existing Xbox console aesthetic.This button hints at a more seamless Xbox integration than we've seen on standard Windows handhelds. According to sources within Windows Central, these devices are currently being tested openly at Microsoft headquarters, suggesting the partnership is not a mere licensing deal but a coordinated push to deepen Xbox’s role within the Windows PC gaming sphere.
Operating System and Software: Windows 11 At the Core
The FCC documentation and accompanying reporting indicate that both Project Kennan and the ROG Ally 2 models are likely to ship with a “full fat” version of Windows 11. This is no minor detail; Microsoft's desktop-class OS offers unparalleled game library support, but it’s historically been a mixed bag for the handheld form factor due to touch interface limitations, desktop navigation, and battery optimization challenges.However, Microsoft is reportedly planning to unveil dedicated gaming-centric enhancements for Windows 11 at its annual Build developer conference on May 19. These could include UI scale adjustments, controller-friendly navigation improvements, and tighter integration with Xbox services such as Game Pass, Play Anywhere, and the Xbox Store. If confirmed, these changes would directly address many of the issues that have made handheld Windows PCs less compelling than competitors like the Nintendo Switch, Valve Steam Deck, or the PlayStation Portal.
Hardware: Specs Still Elusive, But Promises of Power and Efficiency
To date, neither ASUS nor Microsoft has released concrete hardware specifications for Project Kennan or the ROG Ally 2. But industry observers expect at least parity with the current ASUS ROG Ally, a device powered by AMD’s Ryzen Z1 Extreme chip, offering robust performance for modern AAA games at 1080p.Insiders suggest that the successor devices will aim for improved battery efficiency—a critical metric for handheld gaming—without sacrificing the computational muscle needed to run demanding PC titles. Whether Microsoft and ASUS have achieved a step-change in efficiency or merely incremental gains remains to be seen. Until official details emerge, it’s wise to treat any claims about battery life or raw performance with caution.
Xbox Integration: A New Era for Xbox on PC?
Where Project Kennan diverges most dramatically from its rivals and predecessors is in its deep Xbox ecosystem integration. That dedicated Xbox button isn’t just for show—it signals that this device is set to offer the most console-like Xbox experience ever seen on a Windows handheld. While it won’t run every Xbox console-exclusive game natively—backward compatibility remains a sticking point, with true Xbox console game compatibility reportedly reserved for a separate, in-house Microsoft handheld project earmarked for 2027—Project Kennan is said to fully support Xbox Play Anywhere titles, Microsoft Store games, and PC Game Pass, which has seen dramatic growth in both content and user base.Additionally, thanks to its Windows 11 foundation, Kennan will have access to the vast ecosystem of PC platforms—including Steam, Epic Games Store, and more. In practical terms, this positions the device as one of the most versatile gaming handhelds to hit the market, rivaling the Steam Deck while offering much deeper hooks into Microsoft’s gaming ecosystem.
Microsoft’s new internal “Xbox PC” branding, subtly introduced during the recent Gears of War: Reloaded announcement, further suggests that Kennan could be the flagship for a broader push to make “Xbox” synonymous with not just console, but PC gaming experiences as well.
Industrial Design: ASUS DNA, Xbox Accents
Photos from the FCC show that, while the black model (presumed to be Project Kennan) incorporates a dedicated Xbox button, its ergonomics and chassis are more akin to the ASUS ROG Ally than any existing Xbox device. According to Windows Central’s reporting, the device aims for a more comfortable and ergonomic grip, addressing a common pain point among handheld PCs, which often prioritize power and screen size over sustained holding comfort.Some fans may lament that it doesn’t embrace more explicit Xbox console design cues, but ASUS’s influence is unmistakable here. This hybrid identity could serve to attract both ASUS ROG loyalists and Xbox devotees.
Launch Timing: All Eyes on May
Pundits and supply chain insiders predict that both Project Kennan and ROG Ally 2 will be formally unveiled during the week of May 19, coinciding with Microsoft Build and the electronics fair Computex Taipei. The expectation is for Microsoft to focus on transformative Xbox-branded features for Windows gaming handhelds, while ASUS spotlights hardware details for both the ROG Ally 2 and Project Kennan.Given the growing overlap between traditionally discrete PC and console gaming audiences, this joint launch could reshape market perceptions and set the tone for the next wave of handheld gaming innovation.
Price Concerns: The Tariff Elephant in the Room
Perhaps the biggest uncertainty swirling around Project Kennan isn’t performance or game compatibility, but affordability. Ongoing U.S. tariffs on electronics manufactured in China, combined with inflationary pressures and Microsoft’s own recent price hikes for Xbox consoles, signal that the ASUS Xbox handheld is unlikely to be positioned as a budget device. Without binding commitments from either ASUS or Microsoft, any price speculation should be met with skepticism, but it is unlikely to significantly undercut competitors like the Steam Deck or existing ROG Ally models.Value Proposition: What Sets Project Kennan Apart?
- Deep Xbox Integration: Unlike generic Windows handhelds, this device will reportedly offer one-button access to Xbox services, improved Play Anywhere support, and perhaps new UI paradigms built for controllers and touchscreen navigation.
- Full PC Gaming Support: Players will not be limited to Xbox or Microsoft Store titles; anything that works on a Windows 11 PC should be playable within hardware constraints.
- Hardware Leadership: With ASUS’s proven manufacturing chops and Microsoft’s integration, users can expect build quality and after-market support that matches or exceeds previous mobile PC offerings.
- Potential for Platform Evolution: Announced system-wide enhancements to Windows 11 for handheld gaming could translate into meaningful improvements for current and future devices across the market.
Limitations and Known Gaps
- Lack of True Console Backward Compatibility: Unlike a theoretical Xbox Series Portable, Project Kennan will not natively run all Xbox console-exclusive games. Cloud gaming and Xbox Play Anywhere titles will pick up some of the slack, but a direct, local-play analog to the Nintendo Switch experience isn’t on the immediate horizon.
- Battery Life TBD: Early ROG Ally models and similar handheld PCs have struggled to deliver all-day battery life, especially under load. Until independent testing becomes available, skepticism is justified regarding any claims of major improvements.
- Software Uncertainties: While leaks point to new gaming enhancements for Windows 11, Microsoft has not confirmed specifics or whether these will be exclusive to Kennan/ROG Ally 2, or roll out more broadly to other Windows devices.
Broader Implications: Microsoft’s Vision for Gaming
The Kennan project, if accurately represented in these leaks, could mark a significant evolution in Microsoft's approach to gaming hardware and software. Rather than drawing a bright line between console and PC, Microsoft appears to be betting on a unified future where Xbox is an experience—defined by services, interface, and ecosystem—rather than an exclusive hardware SKU.This fits with broader moves in the industry: Sony’s PC game releases, Valve’s hardware forays with the Steam Deck, and Nintendo’s continued mobile-first approach with the Switch. By leveraging existing strengths—the Windows platform, Xbox Game Pass, and a vast developer community—Microsoft could redefine the boundaries of portable PC gaming.
Critical Analysis: Strengths, Risks, and the Road Ahead
Strengths
- Multi-Platform Power: Project Kennan stands to appeal to PC enthusiasts unwilling to compromise on game library access, while also drawing in Xbox loyalists.
- Ecosystem Advantage: Deep integration with Xbox Game Pass and the Microsoft Store gives Kennan and its successors compelling, differentiated value—especially for households invested in existing Xbox consoles and subscriptions.
- Co-Branding Potential: Leveraging ASUS’s credibility in gaming hardware and Microsoft’s software focus could drive broader adoption than either company could achieve alone.
Risks and Potential Downsides
- Price and Accessibility: Without aggressive pricing, Project Kennan could wind up as a niche or luxury device, out of reach for the mainstream market.
- Software Maturity: Windows 11, while versatile, still struggles with touch-first navigation and battery efficiency. If Microsoft’s promised updates fall short, users could be left with an under-optimized experience.
- Competitive Response: Valve, Sony, and others won’t sit idle. The Steam Deck’s firmware improvements and potential follow-up hardware could erode Kennan’s unique selling points.
- Over-promising, Under-delivering: If the device fails to deliver on battery life, comfort, and seamless Xbox experience, it could reinforce skepticism around “Windows gaming handhelds” as a viable product category.
What to Watch For
As Microsoft Build and Computex approach, watch for more official renders, specification sheets, gameplay demos, and—crucially—pricing and availability information. Expect Microsoft to clarify whether its new Xbox PC branding will extend to more devices and peripherals, and how it plans to address the touch and interface hurdles that plague Windows on small screens.It will also be worth tracking developments on the rumored “true” Xbox handheld, speculated to launch in 2027. If that materializes, it could provide native console game support and a first-party alternative to Project Kennan—potentially transforming Microsoft’s hardware business yet again.
Conclusion: Shifting Paradigms, Measured Optimism
Project Kennan represents a potentially pivotal moment for both Microsoft’s Xbox and the broader evolution of portable PC gaming. By partnering with ASUS, leveraging Windows 11, and promising deep Xbox integration, Microsoft is signaling a platform-first, accessible-from-anywhere vision for the future of gaming.Yet, even as the first real photos and FCC details come into focus, crucial questions remain: Will battery life, price, and the software experience rise to the challenge? Are we on the eve of a true Xbox gaming ecosystem that transcends device boundaries—or simply witnessing the next wave of “gaming PCs” with a new badge and sharper marketing?
For Windows and Xbox enthusiasts, it’s an exciting if uncertain time, and one that’s likely to shape the next generation of play—at home, and on the go.