Xbox— Microsoft has quietly pressed pause on its in-house Xbox handheld console project, shifting its focus toward PC handheld gaming optimization and the upcoming successor to the Xbox Series X, according to multiple industry insiders.
While speculation around a native Xbox-branded portable console had been mounting, it now appears that Project Pembrooke — Microsoft’s internal handheld codename — has been sidelined for the foreseeable future.
Instead, Microsoft is doubling down on improving Windows 11 performance on third-party handhelds like the ASUS ROG Ally and Lenovo Legion Go, and supporting its ongoing collaboration with ASUS through a device known as Project Kennan.
Insider Jez Corden confirmed that “Xbox’s own handheld has been shelved (for now)” in favor of accelerating software optimizations and reinforcing the Xbox Game Pass ecosystem across existing Windows-based handhelds.
Kennan — the ASUS-developed device backed by Microsoft — is reportedly nearing a launch later this year and may debut with the powerful AMD Z2 Extreme chipset.
Despite the shift, there’s good news for console fans. Microsoft’s development of the next-generation Xbox console — the direct successor to the Xbox Series X — is moving full steam ahead. Sources say that Gen-10 Xbox hardware prototypes are being refined internally, with no delay in timelines for a likely 2027 release.
The company also continues to test its next-gen Xbox cloud gaming infrastructure, aimed at catching up to rivals like NVIDIA GeForce Now in terms of speed and latency.
Microsoft’s broader hardware strategy seems to be evolving. Rather than launching a first-party handheld to compete with the Nintendo Switch 2, Steam Deck, or potential PS6 accessories, Microsoft is pivoting toward flexibility.
Its focus now lies in strengthening Game Pass, improving Windows gaming experiences, and leveraging partnerships with hardware makers — a move that aligns with its long-term vision of gaming beyond a single box.
This decision underscores a shift in identity: Xbox is no longer just a console. It’s a platform-first gaming brand, extending across consoles, PCs, the cloud, and third-party handhelds. For now, building a native Xbox handheld is on pause, but Microsoft still views it as part of its future — just not its present.
Looking ahead, all eyes turn to the Xbox Games Showcase on June 8, 2025, where Microsoft is expected to unveil new titles, Game Pass updates, and possibly more details about its hardware roadmap. With a powerhouse lineup of studios and an aggressive cloud strategy, the future of Xbox may be more about ecosystem dominance than hardware one-upmanship.