Following years of struggles with poorly optimized handheld PCs, Windows Central reports that Microsoft is potentially developing an Xbox handheld device. The announcement of an Xbox-branded portable device could come as early as this year, although it is likely to be produced through a partnership with a gaming-focused PC manufacturer rather than directly by Microsoft.

According to Windows Central, the planned device, codenamed “Keenan,” will incorporate Xbox design elements, feature an official Xbox guide button, and likely run on Windows 11. Given the cumbersome experience of navigating Windows on the handhelds you can buy today, there is hope that Xbox’s approach will include a tailored launcher or a new method of utilizing the desktop OS that is better suited for a controller than a mouse. One significant advantage SteamOS has over Windows is the option to avoid interacting with a desktop environment if desired.

These rumored plans may align with comments made by Microsoft’s VP of “Next Generation,” Jason Ronald, during an AMD and Lenovo event at CES 2025, titled “The Future of Gaming Handhelds.” According to The Verge, Ronald expressed Microsoft’s intention to merge “the best of Xbox and Windows” and simplify Windows to make it more console-like for handheld devices. Ronald mentioned, “I think we’ll have a lot more to share later this year.”

Phil Spencer, CEO of Microsoft Gaming, has expressed interest in handheld devices previously and stated that the company was experimenting with prototypes. It appears that, for now, Microsoft is adopting an approach similar to Valve’s by creating a handheld-friendly version of its operating system available for other PC makers to use.

This development does not necessarily mean that a first-party handheld device will not be released in the future. Windows Central‘s report mentions potential plans for a successor to the Xbox Series X, new internet-connected controllers, and an official Xbox gaming handheld, all of which are tentatively scheduled for 2027.