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Xbox teases handheld console launch this year

Xbox teases handheld console launch this year

  • 17.03.2025 11:00
  • rollingout.com
  • Keywords: Gaming, Xbox

Xbox is reportedly developing a handheld console for release later this year, potentially named "Keenan," which would run Windows and integrate with Xbox Game Pass. This move aims to compete in the portable gaming market dominated by Nintendo Switch and Steam Deck, leveraging Microsoft's extensive game library and ecosystem. The device could feature custom silicon and design continuity with existing Xbox hardware, marking a significant expansion of Microsoft's gaming strategy beyond traditional consoles.

Microsoft NewsNTDOFsentiment_dissatisfiedLNVGYsentiment_neutral

Estimated market influence

Xbox

Positivesentiment_satisfied
Analyst rating: N/A

Xbox is planning to release a new handheld console, marking their entry into the portable gaming market. This move could potentially increase their market share and compete with Nintendo Switch and Steam Deck.

Nintendo

Nintendo

Negativesentiment_dissatisfied
Analyst rating: Buy

Nintendo's dominance in the portable gaming market may be challenged by Microsoft's new Xbox handheld console, which could impact their current position.

Valve

Negativesentiment_dissatisfied
Analyst rating: N/A

Valve's Steam Deck is currently a significant competitor in the portable gaming space. The introduction of the Xbox handheld could potentially take market share away from Valve.

ASUS

Neutralsentiment_neutral
Analyst rating: N/A

ASUS is mentioned as a potential manufacturing partner for Microsoft's new Xbox handheld console, which could lead to increased business opportunities but doesn't directly impact their current market position.

Lenovo

Lenovo

Neutralsentiment_neutral
Analyst rating: Buy

Lenovo is listed as a possible OEM partner for the Xbox handheld. While this could bring additional revenue, it's not clear how it affects their market standing at present.

Razer

Neutralsentiment_neutral
Analyst rating: N/A

Razer is another potential manufacturer for Microsoft's new device. This partnership could expand Razer's product line but doesn't immediately change their current market position.

Context

Analysis of Xbox Handheld Console Launch

Key Facts

  • Release Date: The handheld console is rumored to launch later in 2025.
  • Codename: The device has been internally referred to as "Keenan."
  • Manufacturer: Likely produced by a partner OEM such as ASUS, Lenovo, or Razer.
  • Operating System: Reportedly runs full Windows and integrates with the Microsoft Store and PC Game Pass.
  • Game Library: Access to Xbox Game Pass, which has millions of subscribers globally.

Market Analysis

  • Market Entry: Microsoft is entering the portable gaming market, currently dominated by Nintendo Switch and Valve’s Steam Deck.
  • Growth Potential: The handheld gaming market has seen significant growth, with devices like the Switch and Steam Deck leading the segment.
  • Revenue Impact: A successful entry could boost Microsoft’s gaming revenue, particularly through synergies with Game Pass.

Competitive Landscape

  • Direct Competitors: Nintendo Switch and Valve’s Steam Deck are primary competitors.
  • Differentiation: The Windows-based system offers broader software compatibility, potentially running thousands of PC titles in addition to Xbox games.
  • Design Continuity: Features an Xbox Guide button for brand recognition, aligning with existing Xbox Series X|S controllers.

Strategic Considerations

  • Hardware Strategy: Microsoft is developing a comprehensive hardware strategy, including future plans like the rumored "Xbox Prime" in 2027.
  • Development Ecosystem: The device aims to streamline game creation across Microsoft’s ecosystem, benefiting its extensive network of game studios.
  • Acquisition Impact: Following the acquisition of Activision Blizzard, Microsoft gains a robust game portfolio to leverage in the portable market.

Technical and Long-Term Implications

  • Technology Advancements: The device may feature custom silicon similar to AMD solutions used in Xbox Series consoles.
  • Battery Life: Modern mobile processors enable console-quality gaming with reasonable battery life.
  • Future Innovations: This launch could accelerate innovation in the portable gaming market, further legitimizing it as a significant segment.

Financial and Industry Impact

  • Revenue Growth: A successful handheld launch could significantly boost Microsoft’s gaming revenue.
  • Market Expansion: The move expands Microsoft’s gaming ecosystem beyond traditional consoles, aligning with its cloud gaming and multi-platform strategy.

This entry positions Microsoft to compete effectively in the portable gaming space while leveraging its existing software and hardware capabilities.