Microsoft might be getting serious about handheld gaming. During an NBC Today segment, the crew got a rare inside look at a secret Xbox hardware lab. Most of what aired felt expected, such as the testing rigs, past devices, nothing groundbreaking.
As the camera followed Microsoft Gaming CEO Phil Spencer into his personal office, we at ICXM.net noticed a handheld device sitting on a shelf. It didn’t scream “prototype,” but it clearly wasn’t something currently on the market either.
As shown in the above screenshot captured by ICXM while we were watching the video, if you look closely, you’ll spot two smaller buttons under the right stick. Something not seen on typical Xbox gear, but it’s somewhat similar to Razer’s Edge handheld or the Kishi V2 controller.
But Spencer probably wouldn’t be showcasing a basic Android handheld unless it had some internal significance.
Xbox Handheld is long in the making
This isn’t the first time talk of a handheld Xbox has surfaced.
In 2024, The Xbox Two podcast hinted at several prototypes.
Jez Corden from Windows Central even mentioned seeing something that looked a lot like the device spotted in Spencer’s office.
More recently, NBC also reported that the next generation of Xbox hardware is already in development. This suggests the company’s plans go beyond just refreshes of current consoles.
Insiders claim Microsoft is working on a portable gaming device called Project Kennan. It’s expected to run Windows, not a unique Xbox OS, and some think it will look similar to ASUS’s ROG Ally. Reports hint that Microsoft is teaming up with ASUS, possibly to bring Xbox’s interface and controls to a familiar PC handheld shell.
ASUS has even teased a new white device online. Some think it could be a prototype of the new Xbox portable, but what Spencer had on his shelf didn’t quite match that teaser.
There’s also talk of a full Xbox UI layered on top of Windows, which might give users a console-like feel. Still, it won’t be a traditional Xbox in the sense of running native Xbox games out of the box.
Ryzen Z2 Go Chip
Project Kennan could launch with a Ryzen Z2 Go chip. That’s the same lower-powered processor used in Lenovo’s Legion Go S—known more for decent portability than high-end performance. Two versions are expected, priced between $499 and $599. It’s unclear if the higher tier will bring stronger specs or just more RAM.
Project Kennan is reportedly just a Windows PC in a portable body. That means you’ll rely on PC game libraries, not native Xbox games—unless you stream them.
If Project Kennan really is coming this year, it’ll need more than a recognizable name to succeed. Right now, it looks like Microsoft is still trying to figure out what it wants this device to be.
Mark Parker is the owner, professional journalist and Editor in Chief at ICXM.net, a news site for gaming, technology, and entertainment. With over 20 years of gaming experience, Mark has clocked over 10,000 hours playing titles like Halo, Gears of War, and Forza Horizon. He’s a PC and Xbox enthusiast, having built custom gaming rigs and Xbox consoles to fuel his passion for immersive gameplay. From analyzing hardware to reviewing AAA games, Mark combines technical know-how with a deep love for gaming. At ICXM.net, he shares industry insights, hands-on reviews, and breaking news for a loyal audience of gaming fans.