ASUS could be Microsoft's partner for the first-ever Xbox-branded PC gaming handheld, and new reports say that a unified Xbox+PC store is top priority.

I understand the Xbox work that has hit the headlines this week is actually called Project Kennan, not Keenan. I’m told that Kennan is the codename for a handheld that is being manufactured by Asus, and it’s part of a larger effort from Microsoft to unify Windows and Xbox towards a universal library of Xbox and PC games.

Microsoft apparently wants its own handheld PC. The first generation is to be developed in collaboration with Asus.

According to Warren, Microsoft's larger goal is to unify Windows and Xbox with a universal library of PC and Xbox games. He says the Xbox handheld being made by ASUS will run a version of Windows but with an interface that's more akin to the GUI on Xbox consoles.

The outlet says in its report that the 2025 Xbox handheld is being created in partnership with ASUS (known for the ROG Ally series of handhelds) and will be powered by Windows - but with an interface that more closely resembles an Xbox.

Microsoft's upcoming Xbox handheld will reportedly be made by Asus, and it aims to take on Steam Deck by delivering a new OS to bring "the best of Xbox and Windows."

New Xbox handheld reports say Asus, the creator of the ROG Ally line of handheld gaming PCs, is partnering with Microsoft on the project.