- Microsoft is reportedly deprioritizing work on a native Xbox handheld.
- Instead, it will focus on improving Windows on third-party handhelds.
- The native Xbox handheld was expected in 2027 alongside next-gen consoles.
The handheld wars are heating up, as Steam OS is finally widely available on third-party handhelds. Early comparisons between Steam OS and Windows on the same hardware have shown a large gap in performance, with Windows’ considerable overhead causing it to lag behind. Microsoft has taken note of this, and it’s reportedly shifting focus to try to keep up.
Yesterday, sources within Microsoft (via Windows Central) revealed that the company announced internally that it will shift priorities away from Xbox handhelds to improve the Windows experience on third-party hardware. Importantly, this will not delay the “Project Kennan” handheld being created in partnership with ASUS. That device is still slated for release later this year, and it may be the first to feature these Windows optimizations.