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

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 reportedly has plans set in motion to release its next Xbox in 2027. Along with the new console, there might be another handheld with this one being a proper Xbox handheld. What might happen is that the handheld is a lower-powered console, like the Xbox Series S, and the new home console will be more like the Xbox Series X.

According to a new report, Microsoft will partner will a gaming PC manufacturer on the first official Xbox handheld console this year.

It's being reported that Microsoft is making a gaming handheld with Xbox branding, and similar to the Steam Deck, it's a great move.

Credit: Future and Microsoft Microsoft is prepping a new handheld version of its Xbox console that could be launched later this year. Meanwhile, plans are afoot to replace the existing Xbox Series S and X consoles in 2027.

A new report has outlined Microsoft’s video game hardware ambition, alleging a full next-gen Xbox is set for 2027 and an Xbox-branded gaming handheld is due out later in 2025. Windows Central reported on a partner PC gaming handheld codenamed Keenan,

The rumor of an Xbox handheld has been floating around for months, but up until now, not much was really known about Microsoft’s launch plans for the hardware. A new report suggests that Microsoft is looking to launch such a handheld in the latter half of 2025.

A next-generation, full-size Xbox will take another two years, according to anonymous sources, but Microsoft's take on the handheld gaming PC could debut in the coming months.