Microsoft is partnering with a manufacturer to make a Xbox-branded handheld that is coming soon.

There’s been plenty of speculation on when Microsoft was going to enter the handheld gaming fray. The Xbox maker appears to have something in the works that may be further along than expected. Microsoft is working with an unknown manufacturer to make its own Xbox-branded gaming handheld, according to a report from Windows Central on Monday.

The device, said to be codenamed Keenan, will be more PC-focused, run on Windows and center on Microsoft’s digital platforms such as the Microsoft Store and PC Game Pass. This handheld, however, is not necessarily a first-party Xbox handheld, but more of a partnership with the unknown PC gaming company to produce a device that will have the Xbox brand and is expected to come out later in 2025.

Microsoft did not respond to a request for confirmation. Xbox boss Phil Spencer has previously discussed creating a gaming handheld. Jason Ronald, Microsoft’s vice president of Xbox Gaming Devices & Ecosystem, told The Verge in January that the Windows handheld gaming device experience would change later this year.

Here’s everything else we know about the handheld Microsoft is working on.

When is the Xbox handheld release date?

There is no official release date yet set. The most likely time for it to come out would be later in the year, around the holidays, with October being the most likely month.

Who is Microsoft partnering with to make it?

So far, it’s unknown who Microsoft is partnering with. A report from The Verge points to Asus as Microsoft’s partner for this endeavor. The handheld market has brought out all the hardware manufacturers to compete with each other, including Acer, Lenovo, Razer, Logitech and MSI. Partnering with Microsoft could be a big boost for Asus over the other competitors as the integration of Windows has been a negative for handhelds as manufacturers have yet to create a user interface that provides as smooth of an experience as Valve does with its SteamOS for the Steam Deck.

When will Microsoft reveal the Xbox handheld?

The most likely time Microsoft will make the big reveal will be in either May or June. June is when most game companies make their announcements as this was when the Electronics Entertainment Expo took place. While that show is not around, the Summer Games Fest has come in to take its place. Microsoft, however, tends to get the announcements rolling early, so it might make the reveal in May.

What features will the Xbox handheld have?

This is still unknown, but Microsoft has been pushing for more devices to work like an Xbox. Back in November, the company started the This is an Xbox campaign promoting all the ways gamers can play their Xbox games away from their consoles, whether it be on laptops, phones or via app on their smart TVs. The report mentions that the handheld could make use of Windows 11 features for gaming, including the Xbox Game Bar, which can monitor the hardware’s performance while gaming.

What’s very likely is that the handheld will make full use of Xbox Cloud Gaming and Xbox Play Anywhere, which allows game owners to play their purchased games on the cloud. Microsoft reportedly wants the handheld to have an interface more akin to the Xbox console dashboard and combine both Xbox and PC games into one library.

What hardware will the Xbox handheld have?

The most likely specs for the handheld would be similar to the latest Windows portable consoles such as the Asus ROG Ally X and Lenovo Legion Go S. Both handhelds, as do several others, use custom AMD processors and GPUs. They also come with at least 16GB of RAM and up to 32GB. These three will be vital to how well the handheld performs when running games.

How much will the Xbox handheld cost?

Reports on the handheld have not established a price. There can be some guesses on the cost based on competing hardware from other manufacturers. The most likely price will be $500 for the new handheld, but it can go higher than that. Handhelds that cost more than $500 usually come with 1TB of storage and an OLED display with a screen larger than eight inches.

What about a new Xbox console?

Microsoft reportedly has plans set in motion to release its next Xbox in 2027. Along with the new console, there might be another handheld with this one being a proper Xbox handheld. What might happen is that the handheld is a lower-powered console, like the Xbox Series S, and the new home console will be more like the Xbox Series X.