Microsoft was right to park the Xbox handheld for ‘Kennan’ and Windows 11 PC gaming — as much as it pains me to admit

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It was announced yesterday that the initial Xbox handheld device from Microsoft has been put on hold, at least temporarily.

The first-party Xbox handheld, unlike the ASUS collaborative device called Kennan, is under development for native play of Xbox games, not Windows PC games.

The portable device code-named Xbox (still undisclosed) would have fulfilled a long-held dream for many vintage Xbox enthusiasts: the capability to carry your Xbox collection with you wherever and whenever you want. However, it appears that we might need to be patient longer before we can actually lay our hands on it, if it even sees the light of day.

As you, dedicated Xbox gamers, grow older, our free time tends to shrink due to numerous factors. Our habits are evolving, our focus is scattered, and now more than ever, people prefer their content to adapt to their lifestyles, rather than the other way around. Platforms such as TikTok and mobile games with addictive qualities offer an instant solution, and they’re always within arm’s reach, 24/7.

To cater to the evolving patterns of user behavior, Microsoft has decided to make its Xbox games accessible on various gaming platforms other than just Xbox. With users becoming increasingly resistant to platform transitions and an unprecedented level of competition vying for our leisure time, this move aims to ensure that Microsoft’s games reach a broader audience.

It’s clear that having technology capable of reaching users in their current environments falls under Xbox’s responsibilities, and the most recent processors offer gaming computer-level power in more compact devices.

As a researcher, I find myself reflecting on the strategic move by Xbox to design a portable gaming console, inspired by Xbox Play Anywhere, Xbox Cloud Gaming, and innovative devices like the UPspec xScreen that transform an Xbox Series S into a portable gaming device resembling a laptop. However, it’s crucial to acknowledge that Microsoft currently faces a significant challenge, one that I perceive as existential and of unprecedented scale. This grand adversity has necessitated Microsoft to channel its resources elsewhere, away from this exciting new venture.

The threat from SteamOS is real …

SteamOS is progressively becoming a significant challenge, even a potential crisis level (DEFCON 1), for Windows 11 in the consumer market. Currently, according to Steam’s April 2025 survey, Windows holds approximately 96% of the total operating system market share on their platform, and this figure is growing as more consumers choose gaming PCs and laptops instead of consoles. However, if Microsoft doesn’t respond appropriately, the situation could shift rapidly in the coming years.

This week, I composed an article comparing Dave2D’s insightful analysis of SteamOS versus Windows 11 for portable PC gaming devices. The Lenovo Legion Go S, equipped with AMD’s Z2 Go chip, received mixed reviews from critics, particularly when it was running on the Windows operating system.

Currently, SteamOS has been released, and it’s evident that the difference in performance is quite significant. In specific scenarios, SteamOS extends battery life by approximately 50% (especially for 2D games), and it can also enhance frame rates and overall performance compared to Windows 11.

In recent times, there has been a widespread perception that Windows’ overall performance has fallen short. Critics often target issues such as ads within the user interface, excess software pre-installed (often referred to as bloatware), background processes running unnecessarily, and limitations on hardware compatibility, which have driven many users towards exploring alternative options. One potential solution could be SteamOS.

Indeed, Windows 11 signifies the pinnacle of compatibility where virtually everything runs smoothly. It’s a platform that has been home to countless games, modifications, launchers, applications, software programs, tools, and suites for decades.

On my latest journey, I opted for my Lenovo Legion Go over my Surface Pro X as my primary tool for boosting my productivity. Utilizing the Steam Deck for such purposes would require me to navigate an excessive amount of complex and time-consuming steps.

However, that’s the situation today.

Support for SteamOS has been officially extended to third-party gaming handhelds, and the response from users has been overwhelmingly favorable. With millions of Steam users to cater to, SteamOS provides more than enough for their gaming needs. The Proton compatibility layer makes it effortless for developers to run their Windows executables smoothly, and in some instances, even better than on Windows 11 itself.

The dominance of Windows as the primary platform for personal computing has been substantially weakened by the emergence of Android, iOS, and smartphones, yet another robust competitor such as SteamOS could deal a severe blow.

or

The reign of Windows in personal computing has been challenged significantly due to Android, iOS, and smartphones, but the arrival of a strong contender like SteamOS could prove disastrous.

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The power of Windows in personal computing has been undermined by Android, iOS, and smartphones, but if a competent rival such as SteamOS arises, it could spell trouble.

In my opinion, SteamOS currently is not yet on par with replacing your traditional laptop or gaming computer. Despite the growing curiosity for alternatives to Windows 11, there are still missing pieces such as competitive games that require Kernel-level anti-cheat, certain modding tools, launchers, PC Game Pass, and more. However, the enthusiasm for these alternatives suggests that SteamOS could potentially evolve into a significant challenge for Windows in the future.

Regardless of the validity, criticisms towards Windows 11 seem to be more vocal than before. Instead of catering to consumers, Microsoft’s Build events appear to prioritize jargon beneficial for investors and business executives over everyday users who interact with their products.

It seems that experienced users have strongly sensed a divide in their gaming experience compared to less active mobile gamers and casual players, as they are much more selective when choosing where to invest their digital time.

As a tech enthusiast, I can confidently say that power users carry significant weight in the gaming community. With high-end handhelds like the ASUS ROG Ally X and Lenovo Legion Go 2 coming with hefty price tags, it becomes crucial to maximize every penny spent. If the value, whether real or perceived, lies within SteamOS, where do you think we’ll flock towards?

Back then, Windows Mobile and Internet Explorer held uncontested reign in their respective domains. However, that supremacy waned, serving as a stark reminder that no lead is ever insurmountable. Microsoft should not underestimate this challenge, even with the widespread use of Windows and its current dominance. The pace of change is swift, and it’s bound to accelerate further, especially when factors such as rapid advancements in AI and the creation of compatibility layers make developing apps for SteamOS a breeze.

… but Microsoft’s time is limited.

In an ideal scenario, Microsoft could simultaneously work on developing an Xbox portable device and enhancing Windows 11 for Original Equipment Manufacturers (OEMs) like ASUS, using the Project Kennan platform. However, in reality, time may be a limiting factor for them to tackle both projects effectively.

It’s indisputable that the potential with Original Equipment Manufacturers (OEMs) is significantly larger and more significant in this context. As more companies such as Razer, Dell, HP, and traditional partners opt for SteamOS over Windows 11 to create their gaming devices, it could potentially deal a substantial blow to Windows’ reputation. OEMs are not tied to Windows; they follow where their customers lead and cater to their desires. If customers prefer SteamOS, they will receive it.

Approximately a decade back, during a Windows consumer gathering, Satya Nadella expressed, “Our aim is for people to cherish Windows every day. We strive to make Windows 10 the most adored version of Windows.

In the past ten years, it seems as though the mindset behind Windows has changed dramatically for the worse. Now more than ever, Windows is making perplexing and annoying choices that infuriate users, all while leaving important features half-cooked or neglected.

Dividing the workload between an Xbox portable device and Windows 11 OEM gaming handhelds might result in neither being top-notch. Ideally, Microsoft could finance both projects, but unfortunately, this isn’t always possible due to various reasons.

frankly speaking, although it’s hard for me to acknowledge this, I believe that Microsoft is choosing wisely by not confronting SteamOS head-on. What I truly wish for is a portable Xbox device.

Most of my video games are digital versions bought through Xbox. If I were Microsoft, though, I’d focus all resources on addressing the gap in user-friendliness and performance between Windows and SteamOS. The reason being, I wouldn’t want Microsoft to continue losing another computing platform to a more agile rival, potentially forever.

But is it already too late? I guess we’ll find out together in the coming months and years ahead.

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2025-05-30 15:10