The Xbox handheld is a collaboration with Asus ROG Ally teases trailer

It looks like the rumours were true (Asus/Microsoft)

Rumours about an Xbox portable console made by a third party company appear to have come true, with a peculiar new teaser trailer from Asus.

Microsoft has been talking about making a handheld console for a long time now but it’s never been clear exactly what they’re planning, with a recent rumour suggesting they have two devices underway: one a next gen console and the other a team-up with a third party, to be released this year.

Who that partner might be was never named, but likely suspects included Lenovo, MSI, Razer, and Asus. And now it seems as if the latter is the one Microsoft has chosen to work with.

The apparent confirmation comes from a new trailer from Asus, that shows the existing Asus ROG Ally and an Xbox controller being combined together into what is implied to be a new piece of hardware.

The resulting console is not properly shown but the implication seems obvious, especially after Xbox replied to Asus’ tweet of the video with the side-eye monkey meme.

None of this would make much sense without the previous rumour but now it seems very clear what’s going on, with a 2025 launch suddenly seeming very likely.

The Xbox portable is supposedly codenamed Project Kennan but it’s unclear how much it will differ from the existing ROG Ally or if, as seems likely, it will be a variant of the upcoming ROG Ally 2.

Since the console is meant largely as an interim release, before the Microsoft-manufactured next gen device, it may be that it’s simple an existing Asus model with Xbox branding on it.

Although Microsoft has been talking about making a handheld for a while now, with Xbox boss Phil Spencer having frequently talked about how much he admires Steam Deck and similar hardware, a recent report revealed that none of them have seen any true mainstream success.

The whole category of gaming portable has only sold a few million worldwide and putting this new Xbox-branded console up against the upcoming Nintendo Switch 2 is certainly a choice. Especially as even just the current model of ROG Ally costs around £570.

However, It seems likely that Microsoft wants to establish itself in the handheld space before the Switch 2 completely takes over, so that by the time the next gen Xbox is ready they already have some experience in the market.

Whether that’s going to work out – and how much effort will be made to promote the device this year – is currently unknown, but it certainly implies a full reveal is likely to happen this summer at the latest.