Microsoft is Rumored to Launch Xbox Handheld - See What It Needs to Beat the Switch 2 & Steam Deck

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So, there’s this growing buzz in the gaming world — and no, it’s not just about the next big AAA release or new console rumors. It’s about the potential for Microsoft to finally enter the handheld gaming market.

With a device allegedly codenamed “Kennan”, reports claim that Microsoft may be partnering with Asus to launch a handheld console running a customized version of Windows

Sounds exciting, right? But if this handheld is going to take on the Nintendo Switch 2 and Steam Deck, there’s a lot it’ll need to get right.

Let’s break it down.

1. Native Game Pass – No More Workarounds!

Look, the Steam Deck can run Game Pass, but it’s not exactly a smooth ride. It requires a bit of tinkering, and frankly, it feels like something that was thrown in there after the fact. 

Microsoft, of all companies, should know that when it comes to Game Pass, it needs to be the star of the show. A handheld built to seamlessly run Game Pass — with full offline play — would set the Xbox handheld apart from its competition.

Switch 2 has Nintendo’s robust ecosystem of games, and the Steam Deck is built to handle virtually anything on PC. 

Xbox, though, can claim the ultimate subscription service to back its portable console. Let’s hope they actually optimize it.

2. Performance Meets Battery Life

Now, let’s talk about power. The Steam Deck is an absolute beast in terms of performance, but it’s also a beast when it comes to size and weight. 

Meanwhile, the Switch 2 is all about portability and battery life but sacrifices some raw power.

Xbox Kennan will need to find that sweet spot between performance and battery efficiency. No one wants a handheld that dies halfway through a session of Halo Infinite

On the other hand, gamers won’t tolerate a console that’s too heavy or bulky either. Compact, powerful, and long-lasting — Microsoft’s challenge here is finding that balance.

3. Custom UI, Not Just a Shrunk Windows Version

It’s all fun and games to run a full-fledged version of Windows on a handheld, but anyone who’s tried using Windows 11 on a tablet knows the pain of resizing desktop apps for a smaller screen. Microsoft can’t just slap Windows on a portable console and call it a day.

They’ll need to optimize the UI for a handheld experience, maybe even customize Windows so it feels more fluid and less clunky. 

Think Nintendo Switch OS — simple, easy to navigate, and tailored for handheld use. If Xbox can do that, it'll be a much smoother experience than the bulky SteamOS.

4. Cloud Gaming and Quick Resume: The Game Changer

One of Xbox’s best features right now is Quick Resume, which lets you jump back into a game exactly where you left off. 

Pair that with Cloud Gaming, and we could be looking at a system where you’re never really "away" from your games, no matter what platform you’re on.

Imagine playing a game on your Xbox at home, then switching to the handheld and picking up exactly where you left off — whether it's a cloud save or a downloaded game. 

That kind of seamless experience could completely blow Switch 2 and Steam Deck out of the water. That’s a big “what if,” though.

5. The Price Point – Keep it Affordable!

Here’s the thing: price matters. Both Switch 2 and Steam Deck are priced for the average gamer, and the Xbox handheld can’t come in at some $600–700 “premium” price tag. 

For this to succeed, Xbox needs to land around $399 — maybe a higher-tier model for enthusiasts, but nothing that prices out casual gamers.

If Xbox can hit that sweet spot of affordability and performance, it could be the first true competitor to the Switch’s dominance in handheld gaming.

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Until the official announcement (and if it even happens), everything about the Xbox handheld remains speculative. 

But if Microsoft plays its cards right, it could offer a serious contender to the Switch 2 and Steam Deck

Whether that’s through native Game Pass, superior performance, or seamless cross-platform play, one thing’s for sure: the race for handheld supremacy is about to get a whole lot more interesting.

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