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Microsoft has not announced that it canceled its own Xbox handheld. Windows Central reported on May 30, 2025, citing unnamed sources, that the company had parked the project for now and shifted attention to improving Windows 11 for handheld gaming and its ASUS partnership. Xbox’s ROG Xbox Ally is a separate, partner-made Windows handheld—not confirmation that Microsoft’s own device is coming.
Is Microsoft still making an Xbox handheld?
The most specific public account of the device’s status remains Windows Central’s May 30, 2025 report. It said Microsoft had sidelined its first-party handheld while prioritizing Windows 11 handheld performance and work with ASUS. The report relied on unnamed sources; Microsoft has not publicly confirmed a cancellation, a restart, or a release timetable. Read Windows Central’s report.
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Windows Central later reported that Xbox President Sarah Bond had discussed future hardware and that sources still described the handheld project as paused, while noting it might never return. Those reports do not establish that Microsoft will ship the device. The project’s codename was also uncertain in the original report, which distinguished it from ASUS’s separate “Kennan” project.
Why was the project reportedly put on pause?
According to Windows Central’s May 2025 reporting, Microsoft shifted near-term effort toward making Windows 11 work better on handhelds and supporting its ASUS collaboration. That points to a reprioritization toward improving the platform and a partner product rather than bringing a Microsoft-made handheld to market on the reported schedule. Microsoft has not publicly confirmed that rationale or announced a new schedule.
#1 Best Overall
- [Xbox experience brought to life by ROG] : The Xbox gaming legacy meets ROG's decades of premium hardware design in the ROG Xbox Ally. Boot straight into the Xbox experience just like a console.
- [Xbox Game Bar integration] : Launch Game Bar with a tap of the Xbox button or play your favorite titles natively from platforms like Xbox Game Pass, Steam, Epic Games, or Windows games on the go.
- [All your games, all your progress]: Powered by Windows 11, the ROG Xbox Ally gives you access to your full library of PC games from Xbox and other game stores. With Xbox Play Anywhere, you can pick up right where you left off on your PC or Xbox and jump back into the game anytime.
- [Never stop gaming]: Powered by ultra-efficient AMD Ryzen Z2 A processor, the ROG Xbox Ally offers console-caliber performance and can game for hours, even away from a wall outlet.
- [Game-ready storage and fast memory]: Store your full library and multitask seamlessly with 512GB SSD and 16GB of LPDDR5 6400MHz RAM. The ROG Xbox Ally makes playing any game in the palm of your hand possible.
The broader strategy is to make Xbox games and experiences work across devices while continuing dedicated gaming hardware. In a March 11, 2026 overview, Xbox described breaking down barriers between console and PC, bringing Xbox mode to Windows 11, and developing next-generation hardware. It said alpha next-generation hardware would go to developers beginning in 2027; that is not a launch date for a first-party handheld. Xbox’s GDC 2026 overview.
In its FY2026 Q4 earnings-call outlook, Microsoft described decisions across content, platform, and operations as part of a reset for long-term growth, with a return to growth expected in fiscal 2027. That company-wide business context does not confirm whether the paused handheld will resume. Microsoft’s FY2026 Q4 earnings materials.
Rank #2
- 【All-in-One Handheld】 The ultimate portable console in your hands. Enjoy retro games, remote play, cloud gaming, and Android titles on a lightweight handheld with responsive controls and a stunning 7” display. More than just a game console — it's a powerful all-in-one entertainment device.
- 【Cloud Gaming + Remote Play】 Cloud Gaming – Instantly play AAA titles over Wi-Fi with subscriptions to Xbox Cloud Gaming (Beta), GeForce NOW, Amazon Luna, PlayStation Plus Premium, and Boosteroid. Remote Play – Stream games locally from your own devices using Moonlight, PlayStation Remote Play, Steam Link or PXPlay.【Need buyer's subscriptions to Xbox or PlayStation.】
- 【Emulator Retro Games + Android Games】 Emulation – Enjoy retro classics with enhanced compatibility and smoother performance on PS2, GameCube, and other popular systems. Android Games – Run most local games with ease, offering more ways to play on a larger screen with console-style controls."
- 【Capacitor Digital Joystick + Switchable Modes】 abxylute One Pro is the first handheld to feature cutting-edge digital joysticks—taller, larger, and more advanced, with an extended input range. Switch between Circle Mode for ultra-precise 0.2% tracking, or Square Mode for broader input—tailored to different play styles."
- 【4K Video Output + Dual Speakers】 Connect to an external display or AR glasses for up to 4K gaming with full controller support, or enjoy immersive gameplay on the built-in 1080P 7” display—perfect for couch play or gaming on the go. Upgraded audio drivers deliver deeper, clearer vocals, and rich, immersive sound in every in-game moment."
What did Xbox say about future hardware?
In an interview covered by Windows Central, Bond said: “We are 100% looking at making things in the future. We have our next-gen hardware in development. We’ve been looking at prototyping, designing. We have a partnership we’ve announced with AMD around it, so that is coming.” Read Windows Central’s coverage of Bond’s comments.
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Repair Windows errors before they cause bigger problemsFix Now →Scan for outdated or missing drivers - takes under a minuteDriver Scan →Bond’s remarks concern future hardware and the AMD partnership. They do not explicitly confirm a Microsoft-made handheld or say when one might arrive. Xbox’s later public discussion of next-generation hardware likewise does not announce a first-party handheld.
Rank #3
- [Xbox experience brought to life by ROG] : The Xbox gaming legacy meets ROG's decades of premium hardware design in the ROG Xbox Ally. Boot straight into the Xbox experience just like a console.
- [Xbox Game Bar integration] : Launch Game Bar with a tap of the Xbox button or play your favorite titles natively from platforms like Xbox Game Pass, Steam, Epic Games, or Windows games on the go.
- [All your games, all your progress]: Powered by Windows 11, the ROG Xbox Ally gives you access to your full library of PC games from Xbox and other game stores. With Xbox Play Anywhere, you can pick up right where you left off on your PC or Xbox and jump back into the game anytime.
- [Never stop gaming]: Powered by ultra-efficient AMD Ryzen Z2 A processor, the ROG Xbox Ally offers console-caliber performance and can game for hours, even away from a wall outlet.
- [Game-ready storage and fast memory]: Store your full library and multitask seamlessly with 1TB SSD and 16GB of LPDDR5 6400MHz RAM. The ROG Xbox Ally makes playing any game in the palm of your hand possible.
What can the ROG Xbox Ally play?
The ROG Xbox Ally is the Xbox-branded ASUS partner handheld, not the reported Microsoft-made device. Xbox describes it as a Windows-based handheld that runs PC games natively, including games installed through Xbox, Game Pass, and third-party storefronts. It is not described as a device that natively runs the full console Xbox library. Xbox’s ROG Xbox Ally announcement.
Because it runs Windows PC games, the experience can depend on each game’s controller support and suitability for a small screen. Xbox has published handheld compatibility guidance to help players assess supported games. Check Xbox handheld compatibility.
Quick Recap
Rank #4
- 🚀 AMD RYZEN AI Z2 EXTREME PERFORMANCE: Powered by the AMD Ryzen AI Z2 Extreme 8-core, 16-thread processor (up to 5.0GHz max turbo) with AMD Radeon Graphics and 24MB smart cache, delivering ultra-smooth performance for AAA gaming, AI workloads, and multitasking.(Japan Version. It can be used in the United States with the included plug adapter, and the system language can be switched to English for normal use.)
- 💾 24GB LPDDR5X RAM & 1TB PCIe 4.0 SSD: Equipped with 24GB high-speed LPDDR5X onboard memory and a 1TB M.2 2280 PCIe 4.0 x4 NVMe SSD for lightning-fast boot times, quick game loading, and seamless multitasking across demanding applications.
- 🖥️ 7” FHD 120HZ TOUCHSCREEN DISPLAY: Experience crisp visuals on a 7-inch Full HD (1920×1080) IPS-level touchscreen with a smooth 120Hz refresh rate, responsive touch control, and vivid color reproduction for immersive gameplay.
- ❄️ ERGONOMIC DESIGN & INTELLIGENT COOLING: Designed for comfort during extended gaming sessions, featuring ergonomic grips and ROG’s advanced intelligent cooling system to maintain consistent performance under heavy workloads.
- 🎮 WINDOWS 11 WITH XBOX & PC GAME ECOSYSTEM: Runs on Windows 11, providing full compatibility with Xbox Game Pass, Steam, Epic Games Store, and other PC platforms—offering a true hybrid experience that blends console-style gaming with PC flexibility.
What is known—and not known—about the two devices?
| Question | ROG Xbox Ally | Microsoft first-party handheld |
|---|---|---|
| Who makes it? | ASUS, in partnership with Xbox; described by Xbox as a Windows handheld. Xbox announcement | No shipping Microsoft-made handheld has been confirmed; Windows Central reported the project paused, citing unnamed sources. Windows Central report |
| What games does it play? | PC games natively from Xbox, Game Pass, and third-party storefronts, according to Xbox. Xbox announcement | Library and platform are not stated for a confirmed shipping device. |
| Is it available as a product? | Xbox presents it as its ASUS partner handheld. Check the current ASUS listing for availability in your market. ASUS ROG Xbox Ally product page | No confirmed product listing or release date is established by the cited reporting or official Xbox announcements. |
| Does it run the full console Xbox library natively? | Xbox describes native PC gaming, not native support for the full console Xbox library. | Not stated for a confirmed shipping device. |
What should buyers take from the pause report?
- If you want an Xbox-branded handheld now, the ROG Xbox Ally is the partner product to investigate; check its current availability and game compatibility for your market and library.
- If you are waiting for a Microsoft-made handheld with a console-style Xbox library, there is no confirmed release date or guarantee that the reported project will return.
- Do not treat Xbox mode on Windows 11 or next-generation console development as an announcement of that handheld. They are broader platform and hardware plans.
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
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