ASUS will manufacture the new portable Xbox console

In recent years, some of the leading hardware brands have been investing in developing their own handheld consoles to enter a growing market. This trend has not gone unnoticed by Microsoft, which is planning to launch its own portable Xbox. However, instead of manufacturing the device in-house, the company has decided to delegate production to a more experienced player in the industry.

Handheld consoles have brought a significant shift to the gaming world, allowing players to enjoy next-generation titles anywhere without needing a traditional console or PC. Additionally, their balanced performance and affordable pricing make them an attractive alternative to conventional gaming devices, offering a PC-like experience without requiring a hefty investment.

Recently, reports have emerged that all but confirm Xbox is working on a new handheld device set to launch alongside the next generation of consoles in 2027. Despite having the capability to develop it internally, Microsoft has chosen to entrust production to an external company with extensive experience in hardware and handheld gaming devices.

In this case, the chosen company is ASUS, the Taiwanese tech giant known for its gaming hardware. Reports indicate that ASUS will be responsible for bringing the “Kennan” project to life, leveraging its expertise in manufacturing handheld consoles—especially with the ROG Ally, one of the most prominent competitors in the market alongside the Steam Deck.

However, this is not the only project in development at Xbox. The company is also working on “Bayside,” an initiative introduced at this year’s CES that aims to unify Xbox and Windows under a single interface, regardless of the device being used. This would significantly improve the experience for users of handheld consoles running Windows 11, eliminating current usability challenges.

Additionally, Microsoft is looking to integrate a unified game store alongside this new interface, simplifying the process for both developers and gamers. This would allow users to access a single platform instead of navigating between the Microsoft Store and the Xbox app on PC.