Microsoft Reportedly Cancels Its Xbox Handheld
Microsoft has reportedly cancelled its first-party Xbox handheld, codenamed Project Kennan, to focus on its next-generation console.
- Microsoft has reportedly cancelled its first-party Xbox handheld.
- The device was codenamed Project Kennan.
- Microsoft is said to be focusing on its next-gen console instead.
Has Microsoft really cancelled its Xbox handheld?
Microsoft has reportedly cancelled its first-party Xbox handheld, codenamed Project Kennan, to focus its efforts on its next-generation console, according to Eurogamer. The device was widely expected to be Microsoft's answer to the Steam Deck and ROG Ally.
The report suggests Microsoft is redirecting resources toward the next mainline Xbox rather than spreading itself across multiple hardware bets. The company has not publicly commented on the cancellation.
Why would Microsoft drop the handheld?
Microsoft has increasingly framed Xbox as a platform rather than a single box, with Game Pass and cloud streaming at the centre of its strategy. A dedicated first-party handheld may have been seen as redundant alongside third-party Windows handhelds it already supports.
Concentrating on a strong next-gen console also lets Microsoft avoid splitting its hardware engineering during a critical period, as it looks to respond to the runaway success of Nintendo's Switch 2.
What happens to Xbox handheld gaming now?
Microsoft is still expected to support handheld play through partnerships with third-party Windows devices and its existing work optimising the Xbox app for portable PCs. A first-party Xbox handheld, however, appears off the table for now.
Microsoft has reportedly scrapped its Project Kennan Xbox handheld to focus on its next-gen console. The move suggests Microsoft would rather back third-party handhelds than build its own.
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