Rumors are swirling about an Xbox handheld gaming system, codenamed Keenan​​​​​​. If true, this would be Xbox's first dip into the handheld gaming market. The rumor mill is buzzing, with fans and insiders speculating that the handheld could be released as soon as 2025, while the true successor to the Xbox Series X is slated for a 2027 release window. This is huge news and potentially concerning for Nintendo, which is releasing the Switch 2 soon.

While there are already handheld devices like the Steam Deck, none have challenged Nintendo's dominance quite like an Xbox handheld could. Microsoft's Xbox has an entire ecosystem with its Game and cloud gaming services, so Xbox's handheld could draw a huge audience and potentially take away from Nintendo's. If the rumors are true, the handheld gaming market is about to get a lot more interesting for fans and companies alike.

An Xbox Gaming Handheld Is Reportedly Releasing This Year

Potential Xbox Handheld Gaming Console Could Mean Big Things

According to Windows Central, Xbox is working on its first-ever gaming handheld, which is expected to be released sometime this year. Right now, the device is known as Keenan, and it is said to be a collaboration between Microsoft and a major PC gaming brand – think along the lines of ASUS, Lenovo, or Razer. There's no official announcement yet, but the expectation is that this handheld will deliver a true Xbox gaming experience in portable form.

The handheld is rumored to run on Windows, giving players access to Game , the Microsoft Store, and other popular platforms like Steam. Compared to the Steam Deck, this could be a significant advantage since the Steam Deck runs on Linux, which many s find limiting or unfamiliar. The advantage of the Xbox handheld running on Windows is that it allows players to easily switch between Xbox games and other gaming libraries and platforms. Keenan is also expected to feature a dedicated Xbox button and design elements that make it feel familiar to Xbox fans.

Though the Steam Deck runs on SteamOS via Linux and is mainly used to access your Steam library, there are ways to emulate older gaming systems as well as get other gaming platforms to run on it.

Another significant advantage that makes this potential handheld console stand out is that it's designed to fit within the Xbox ecosystem. Players could sync their progress across different consoles, including an Xbox, handheld device, and PC. Plus, with cloud gaming, players could instantly access their game library without ing everything. If done right, Keenan could give Xbox a strong foothold in the growing handheld gaming market.

Although the exact specs and price are still unknown, the potential for this device is huge. It could offer console-level performance while remaining portable, something many have hoped for out of a potential Xbox handheld. If the handheld does launch this year, it could begin a new chapter for Xbox that fully embraces portable gaming without abandoning its traditional console roots and give Nintendo something to be concerned about.

Xbox's Handheld Console Would Be A Major Competitor With Switch 2

The First Real Competition For Nintendo's Switch Console

If Xbox’s handheld launches in 2025, it could give the Nintendo Switch 2 some serious competition. While handheld gaming devices like the Steam Deck, ASUS ROG Ally, and Lenovo Legion Go exist, none directly challenge the Switch’s mainstream popularity, though they may provide some competition. An Xbox handheld, however, could be a different story.

With Xbox's Game offering hundreds of games, cloud gaming capabilities, and cross-platform play, an Xbox handheld could provide players with a console-quality experience on the go. Unlike devices like the Steam Deck, which focus mainly on PC gaming, an Xbox handheld would offer a more familiar console experience, something Switch s are already accustomed to.

The Switch has long boasted the ease of use that comes with console gaming, whereas the Steam Deck tends to be a bit more technically involved, like traditional PC gaming.

Xbox also has brand recognition to help it gain traction quickly in the handheld market. Nintendo has long dominated the handheld market, but Xbox stepping in with a strong portable device could shift the balance. Players who already own an Xbox console or use Game would easily transition to handheld gaming without having to start from scratch. This level of accessibility could quickly turn Xbox’s handheld into a mainstream success.

Of course, the Switch 2 still has the upper hand with its first-party exclusives like Zelda and Mario. However, Xbox has its own heavy hitters, like Halo, Forza, and Starfield. With Xbox’s growing library of popular games and its push toward cloud gaming, a handheld console could make Xbox a major player in the portable gaming space. If Microsoft prices the device competitively, it could challenge the Switch 2’s portable gaming dominance.

Where Xbox's Handheld Console Fits Within The Console Wars

Let The Console Wars Truly Begin

The release of an Xbox handheld could seriously shake things up in the console wars. For a long time, the battle has mostly been between Xbox and PlayStation when it comes to home consoles, while Nintendo has completely dominated the handheld gaming space. Microsoft has said Xbox will the Switch 2, but if Xbox enters the portable gaming market, things could change in a big way.

One thing that makes this handheld so interesting is how it could appeal to both console and PC s. Since it’s rumored to run on Windows, it would likely Game , the Microsoft Store, and even other platforms like Steam. That means players wouldn’t just be limited to the proprietary Xbox platform for purchasing games. This could easily make the Xbox handheld feel like a "do-it-all" gaming device, which is something PlayStation doesn’t currently offer.

There are still some questions about how well it will perform, too. Pricing will be a big factor: if it’s too expensive, it could turn people away. The performance will also matter a lot. It may struggle to gain momentum if the handheld can’t keep up with the Switch 2 or other popular devices like the Steam Deck. Yet, if Xbox can deliver a powerful, affordable, easy-to-use handheld, it could quickly become a must-have device.

The home console wars have mostly been between Sony's PlayStation and Microsoft's Xbox, but this handheld could change the game entirely. It would put Xbox in direct competition with Nintendo in a way it hasn't been since before the Switch. If Microsoft plays its cards right, the Xbox handheld could become the first real threat to Nintendo’s handheld dominance. With the rumored Switch 2 on the horizon, the timing couldn't be more perfect for Xbox to finally make its mark in portable gaming.

Source: Windows Central