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Xbox Handheld Reportedly Being Made in Collaboration With Asus

Xbox Handheld Reportedly Being Made in Collaboration With Asus

  • 13 hours ago
  • gamerant.com
  • Keywords: AI

Xbox is collaborating with Asus to develop a handheld console, aiming for a late-2025 release. The partnership seeks to unify Windows and Xbox platforms.

Microsoft NewsMicrosoft Reports

Estimated market influence

Xbox

Positive
Analyst rating: N/A

Xbox is developing a new handheld console in collaboration with Asus.

Asus

Positive
Analyst rating: N/A

Asus is collaborating with Xbox to develop a handheld gaming console.

Context

Analysis of Xbox Handheld Collaboration with Asus: Business Insights and Market Implications

Key Facts and Data Points

  • Collaboration: Microsoft's Xbox is reportedly collaborating with Asus to develop a handheld gaming console.
  • Code Names: The project is referred to as Project Kennan, with platforming work under Project Bayside.
  • Release Timeline:
    • Rumored release by end of 2025.
    • Skepticism exists, with some sources suggesting a more likely release in 2027.
  • Development Confirmation: Microsoft Gaming CEO Phil Spencer confirmed the development of an Xbox handheld console in November 2024.

Market Competition

  • Steam Deck Dominance:
    • Sold between 3.7 million to 4 million units from 2022 to 2024, dominating the handheld gaming PC market.
    • This is roughly double the combined sales of all other handheld gaming PCs in the same period, including Asus's own ROG Ally.
  • PlayStation Vita Comparison:
    • Sold approximately three times as many units as Steam Deck during its three-year window (2012–2015).

Strategic Considerations

  • Market Entry: Xbox enters a competitive handheld gaming market with significant barriers to entry, including:
    • Established competitors like Steam Deck and PlayStation Vita.
    • Asus's expertise in handheld gaming PCs may provide a strategic advantage.
  • Unified Ecosystem: The partnership aims to unify the Windows and Xbox ecosystems, potentially offering a single user interface across PC, handheld, and console devices.

Business Impact

  • Potential Success Factors:
    • Leveraging Asus's experience in manufacturing handheld devices.
    • Microsoft's brand strength and gaming ecosystem could drive adoption.
  • Risks:
    • Long development cycle (potentially delayed until 2027).
    • Market saturation with existing handheld options.

Long-Term Effects

  • Ecosystem Expansion: Success of the Xbox handheld could strengthen Microsoft's position in the gaming market by bridging the gap between consoles and PCs.
  • Competitive Landscape: The product could redefine competition in the handheld gaming sector, potentially influencing other console manufacturers.

Conclusion

The collaboration with Asus represents a strategic move for Microsoft to expand its gaming reach. However, the success of the Xbox handheld will depend on effective execution, timely release, and differentiation from existing competitors.