In a notable turn for the intersection of console and PC gaming, new images and details have emerged around an intriguing device: Xbox's closely allied handheld project with ASUS, codenamed "Project Kennan." Initially reported through regulatory documentation by the United States Federal Communications Commission (FCC), these leaks showcase two advanced handheld gaming prototypes—one assumedly the successor to the popular ASUS ROG Ally, and the other a darker-hued model believed to be the so-called "Xbox ASUS ROG Ally," or Project Kennan. This article provides an in-depth analysis of these developments, critically examining the implications for the broader PC gaming ecosystem, Microsoft's evolving Xbox strategy, and what anxious gamers can expect as this competitive space heats up.
Images that surfaced from the FCC filings, reportedly via VideoCardz and corroborated by Windows Central, display two similar but clearly distinguishable devices. While the white model is presumed to be the ASUS ROG Ally 2, attention is particularly focused on the black variant—widely identified as Project Kennan—sporting a uniquely positioned Xbox button on its upper left corner. Despite its prototype appearance, with telltale wear and a lack of final branding, a distinct "X" engraving signals its Xbox lineage.
The design language remains unmistakably ASUS, reminiscent of the first ROG Ally with its sharp edges and hand-friendly grips. However, ergonomic improvements are cited, and the presence of an Xbox button hints at a deeper level of Microsoft integration, positioning this device as more than just a rebranded handheld—rather, as a showcase for Xbox’s ambitions in the PC sector.
This partnership reflects not only ASUS’s technical prowess in portable PC gaming (with its successful ROG Ally line) but also Microsoft’s intent to push the Xbox brand well beyond living room consoles. Independent industry sources such as The Verge and Tom’s Hardware have confirmed that ASUS is heavily invested in the next era of handheld PC gaming, while Microsoft executives have repeatedly suggested in public statements over recent years a desire to make Xbox synonymous with “gaming on every screen.”
Critically, Windows Central speculates that Microsoft may announce new gaming-focused features in Windows 11 at its annual Build event, anticipated for late May. Such features could include a dedicated gaming UX, streamlined Game Pass integration, or more robust controller support—enhancements that could make Windows-based handhelds far more appealing to mainstream consumers. Some analysts predict that, if these upgrades are indeed unveiled, the new Xbox ASUS ROG Ally could serve as the flagship device for Microsoft's “Xbox PC” branding—a new label reportedly used internally for Xbox’s PC game initiatives.
However, it is important to note that, despite the Xbox button and Microsoft’s branding, Project Kennan will not natively play Xbox console games. Rather, compatibility will be limited to titles that support Xbox Play Anywhere (a cross-buy initiative for PC and Xbox games) and those available through Microsoft’s various PC platforms. As of early 2025, full console game compatibility is reserved for a purportedly in-development, first-party Xbox handheld, which industry insiders believe may launch no earlier than 2027. This division of device capability is crucial: while Project Kennan will offer a robust PC gaming experience, it will not act as a one-to-one replacement for a traditional Xbox Series X or S in handheld form.
Insiders and analysts, including those cited by PC Gamer and IGN, speculate that the next generation of such handhelds will focus heavily on battery life and thermal management—areas where even the best PC-based handhelds continue to struggle compared to more conservative, ARM-powered rivals like the Nintendo Switch. ASUS’s own roadmap, shared at previous Computex and CES events, indicates a strong focus on maximizing wattage efficiency, adopting superior cooling solutions, and integrating superior haptics and display tech.
While photographs and prototype images might hint at slightly bulkier, ergonomic grips—a likely nod to extended play sessions—the lack of finalized specs means that all claims should be taken with a measure of skepticism until official announcements are made. Given the timing of the leaks ahead of key trade shows such as Computex and Microsoft Build, it is plausible that ASUS and Microsoft will coordinate their disclosures, potentially segmenting stage time between hardware reveal and Xbox-specific software announcements.
Compared to the competition, ASUS benefits from deeper engineering resources and a close relationship with both Microsoft and AMD, allowing it to iterate quickly on both hardware and software. For Microsoft, the opportunity is even broader: making Xbox synonymous with PC-based gaming gives it an edge over both Sony and Nintendo—two companies whose own handheld and remote play products remain locked to proprietary platforms.
Market analysts at IDC and NPD Group have both suggested that the PC handheld segment could see double-digit growth year-over-year through at least 2027, particularly as chip and battery advances continue to shrink the gap between mobile and desktop experiences.
Factoring in the ROG Ally’s current price of $699 (USD) at launch, industry consensus suggests that any next-generation model with richer integration might start at $799 or higher, potentially putting it out of reach for budget-conscious gamers. Of course, the final price will depend on configuration, storage, and launch region, as well as any bundled Game Pass offers.
For now, devices like Project Kennan serve as advance scouts, bridging the gap between today’s Windows-powered gaming hardware and tomorrow’s more unified Xbox experience, no matter the screen or form factor.
Gamers, industry analysts, and rivals alike will be watching closely at Build and Computex for official details. Should ASUS and Microsoft follow through with their rumored reveals, the next chapter of PC and Xbox handheld gaming will quickly come into view—one defined by choice, flexibility, and deeper integration than ever before. Until then, the grainy, ad hoc images leaked through regulatory filings remain a tantalizing preview of a rapidly evolving gaming landscape.
The Arrival of Project Kennan: What the FCC Leak Reveals
Images that surfaced from the FCC filings, reportedly via VideoCardz and corroborated by Windows Central, display two similar but clearly distinguishable devices. While the white model is presumed to be the ASUS ROG Ally 2, attention is particularly focused on the black variant—widely identified as Project Kennan—sporting a uniquely positioned Xbox button on its upper left corner. Despite its prototype appearance, with telltale wear and a lack of final branding, a distinct "X" engraving signals its Xbox lineage.The design language remains unmistakably ASUS, reminiscent of the first ROG Ally with its sharp edges and hand-friendly grips. However, ergonomic improvements are cited, and the presence of an Xbox button hints at a deeper level of Microsoft integration, positioning this device as more than just a rebranded handheld—rather, as a showcase for Xbox’s ambitions in the PC sector.
Microsoft and ASUS: A Genuine Collaboration
Historically, PC gaming handhelds and Xbox-branded devices have been separate universes. The current collaboration is unique—Microsoft has previously endorsed partner hardware via the "Designed for Xbox" initiative, but never has an Xbox-specific button been featured so prominently outside Microsoft’s own hardware. Reports, including those from Windows Central, suggest that Project Kennan is being tested inside Microsoft headquarters, lending substantial credibility to the project’s authenticity and the seriousness with which it is being developed.This partnership reflects not only ASUS’s technical prowess in portable PC gaming (with its successful ROG Ally line) but also Microsoft’s intent to push the Xbox brand well beyond living room consoles. Independent industry sources such as The Verge and Tom’s Hardware have confirmed that ASUS is heavily invested in the next era of handheld PC gaming, while Microsoft executives have repeatedly suggested in public statements over recent years a desire to make Xbox synonymous with “gaming on every screen.”
What Software Will Run? Windows 11, Xbox Integration, and the Broader Gaming Library
A key differentiator of Project Kennan, should leaked details prove accurate, is the breadth of its game compatibility. The devices are reported to run a complete version of Windows 11. This immediately presents a significant advantage over more closed systems, such as the Nintendo Switch or PlayStation Portal, as it allows for full access not only to Microsoft’s PC Game Pass but also third-party storefronts including Steam and the Epic Games Store.Critically, Windows Central speculates that Microsoft may announce new gaming-focused features in Windows 11 at its annual Build event, anticipated for late May. Such features could include a dedicated gaming UX, streamlined Game Pass integration, or more robust controller support—enhancements that could make Windows-based handhelds far more appealing to mainstream consumers. Some analysts predict that, if these upgrades are indeed unveiled, the new Xbox ASUS ROG Ally could serve as the flagship device for Microsoft's “Xbox PC” branding—a new label reportedly used internally for Xbox’s PC game initiatives.
However, it is important to note that, despite the Xbox button and Microsoft’s branding, Project Kennan will not natively play Xbox console games. Rather, compatibility will be limited to titles that support Xbox Play Anywhere (a cross-buy initiative for PC and Xbox games) and those available through Microsoft’s various PC platforms. As of early 2025, full console game compatibility is reserved for a purportedly in-development, first-party Xbox handheld, which industry insiders believe may launch no earlier than 2027. This division of device capability is crucial: while Project Kennan will offer a robust PC gaming experience, it will not act as a one-to-one replacement for a traditional Xbox Series X or S in handheld form.
The Hardware: Chasing Power and Efficiency
As for technical specifications, concrete details for both the ASUS ROG Ally 2 and Project Kennan are scant. Nevertheless, given the significant strides in mobile computing over the past two years and the competitive market landscape, it is reasonable to expect at least parity, if not improvement, over the current ROG Ally. That model utilizes AMD’s latest Ryzen Z1 Extreme APU, offering credible performance for modern AAA titles at 1080p with decent battery efficiency.Insiders and analysts, including those cited by PC Gamer and IGN, speculate that the next generation of such handhelds will focus heavily on battery life and thermal management—areas where even the best PC-based handhelds continue to struggle compared to more conservative, ARM-powered rivals like the Nintendo Switch. ASUS’s own roadmap, shared at previous Computex and CES events, indicates a strong focus on maximizing wattage efficiency, adopting superior cooling solutions, and integrating superior haptics and display tech.
While photographs and prototype images might hint at slightly bulkier, ergonomic grips—a likely nod to extended play sessions—the lack of finalized specs means that all claims should be taken with a measure of skepticism until official announcements are made. Given the timing of the leaks ahead of key trade shows such as Computex and Microsoft Build, it is plausible that ASUS and Microsoft will coordinate their disclosures, potentially segmenting stage time between hardware reveal and Xbox-specific software announcements.
Deeper Xbox Integration: What Does It Really Mean?
Beyond hardware, the most significant promise of Project Kennan is closer Xbox integration. This entails several practical enhancements:- Single Sign-On via Xbox Account: Streamlined login, access to Game Pass libraries, and personalized recommendations.
- Xbox App Built-In: One-touch access to Xbox social features, friends lists, cloud saves, and party chat, bringing console-like community aspects to the PC handheld realm.
- Optimized Game Pass Experience: According to multiple reports, Microsoft is likely prioritizing handheld-friendly Game Pass navigation, quick-resume functionality akin to Xbox Series X/S, and instant access to Xbox Play Anywhere titles.
- Adaptive Controllers and Accessibility: Closer Xbox branding could also mean out-of-box support for the latest Xbox accessories, including adaptive controllers and the “Designed for Xbox” ecosystem, important for inclusivity and broader market appeal.
Market Context: The PC Gaming Handheld Renaissance
It is no accident that Xbox and ASUS are investing heavily in the PC handheld gaming sector. The runaway success of the Valve Steam Deck in 2022–2024 demonstrated there is substantial demand for portable devices that do not compromise on performance or software compatibility. More recently, Lenovo (with the Legion Go), MSI, and even Ayaneo have thrown their hats into the ring, each chasing slightly different consumer preferences.Compared to the competition, ASUS benefits from deeper engineering resources and a close relationship with both Microsoft and AMD, allowing it to iterate quickly on both hardware and software. For Microsoft, the opportunity is even broader: making Xbox synonymous with PC-based gaming gives it an edge over both Sony and Nintendo—two companies whose own handheld and remote play products remain locked to proprietary platforms.
Market analysts at IDC and NPD Group have both suggested that the PC handheld segment could see double-digit growth year-over-year through at least 2027, particularly as chip and battery advances continue to shrink the gap between mobile and desktop experiences.
The Price Barrier and Tariff Troubles
Yet the question of price looms large. Multiple reports point to the United States’ ongoing tariff disputes with manufacturing nations, notably China, leading to increased hardware costs across the board. These tariffs directly impact the landed price of consumer electronics, with Microsoft and ASUS likely forced to pass on at least some of these costs to end users. Indeed, Microsoft just recently raised the base price of Xbox Series consoles, reflecting rising manufacturing and logistics costs. If the Project Kennan device follows suit, affordability could become the single greatest gating factor for mass market adoption.Factoring in the ROG Ally’s current price of $699 (USD) at launch, industry consensus suggests that any next-generation model with richer integration might start at $799 or higher, potentially putting it out of reach for budget-conscious gamers. Of course, the final price will depend on configuration, storage, and launch region, as well as any bundled Game Pass offers.
When to Expect Official News?
With the leaks now public, the pressure is on for ASUS and Microsoft to move beyond grainy photos and unofficial comments. Key tech events are rapidly approaching, including:- Microsoft Build (May 19): The venue where attendees expect announcements regarding Windows 11’s gaming features and possibly the “Xbox PC” branding push.
- Computex (May 20): Historically a showcase for next-gen ASUS hardware, this year’s edition is widely rumored to be where both the ROG Ally 2 and Project Kennan will make their official debut.
Risks and Open Questions
While the tangible benefits of this collaboration are apparent, a few notable risks remain:- Market Fragmentation: With increasing numbers of Windows-based handhelds, software support and optimization could become fractured, frustrating consumers who expect “it just works” functionality akin to consoles.
- Battery Life: Unless significant advances are made, power-hungry x86 CPUs and RDNA-based GPUs may struggle to deliver extended playaway from an outlet.
- Price Sensitivity: In a still-recovering global economy, high launch prices could cap initial adoption and open the door for more affordable competitors.
The Bigger Picture: Microsoft’s “Xbox PC” Identity
Underpinning all of these moves is a strategic pivot from Microsoft. Recently, the company introduced “Xbox PC” branding in promotional materials for games like Gears of War: Reloaded, signaling a renewed push to claim a greater share of the PC gaming universe. This rebranding aligns with Satya Nadella’s oft-stated vision of making Xbox not just a console, but a universally recognized gaming platform—hardware-agnostic and software-first.For now, devices like Project Kennan serve as advance scouts, bridging the gap between today’s Windows-powered gaming hardware and tomorrow’s more unified Xbox experience, no matter the screen or form factor.
Conclusions: What to Watch For
In the coming months, the most consequential questions will be how well ASUS and Microsoft can deliver on the promise of Project Kennan—balancing performance, price, user experience, and brand identity. If successful, the device has the potential to set a new standard for hybrid PC/Xbox gaming, accelerating the shift toward open, cross-platform play and untethered gaming freedom.Gamers, industry analysts, and rivals alike will be watching closely at Build and Computex for official details. Should ASUS and Microsoft follow through with their rumored reveals, the next chapter of PC and Xbox handheld gaming will quickly come into view—one defined by choice, flexibility, and deeper integration than ever before. Until then, the grainy, ad hoc images leaked through regulatory filings remain a tantalizing preview of a rapidly evolving gaming landscape.
