Asus and Xbox Tease New Gaming Handheld Ahead of Switch 2 Reveal

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A recent teaser from Asus and Xbox has sparked speculation across the gaming world, suggesting that both companies are collaborating on a powerful new handheld console. The timing of the announcement has raised eyebrows, coinciding almost exactly with Nintendo’s plans to showcase the Switch 2.

On March 31, Asus ROG posted a brief teaser video on its official X (formerly Twitter) account, giving fans a glimpse of what appears to be a new handheld gaming device. The clip starts with the familiar boot-up animation of the ROG Ally, followed by a blurry silhouette of a console featuring glowing analog sticks. The device, referred to as the ROG Ally X, then merges seamlessly with an Xbox controller adorned in ROG branding. Shortly after the teaser dropped, Xbox responded with a playful meme, adding fuel to the rumors.

The strategic release of the teaser just two days before Nintendo’s big Switch 2 presentation doesn’t seem like a coincidence. It appears Asus and Microsoft are trying to shift some attention toward their own upcoming hardware.

“Project Kennan” May Be More Than a Rumor

Whispers of a project codenamed “Kennan” have been circulating for some time. Sources suggest that Microsoft has been working closely with an OEM partner—now believed to be Asus—on a portable PC gaming device that integrates deeply with the Xbox ecosystem. While this wouldn’t be a dedicated Xbox handheld in the traditional sense (running proprietary Xbox software), it’s expected to operate on Windows and fully support Xbox features such as Game Pass for PC, Xbox Cloud Gaming, and the Xbox Game Bar.

There’s also talk of a custom-designed interface optimized for controller use, akin to Steam’s Big Picture mode. It’s likely that Armoury Crate SE, Asus’s gaming hub software, will evolve to support this new device, offering smoother navigation and user-friendly integration with Xbox services.

Building on the ROG Ally Legacy

The teaser references enhancements over the original ROG Ally and its updated version, the ROG Ally X—both Windows-based handhelds powered by AMD Ryzen chips. These devices have earned recognition as worthy competitors to the Steam Deck, delivering high-performance gaming on the go.

According to the teaser, the new handheld promises “more endurance,” “more speed,” “more storage,” and an updated, sleeker design. Whether a new AMD processor—possibly the rumored Ryzen Z2 Extreme—will be powering the device remains uncertain.

No Release Date Yet, But 2025 Seems Likely

As of now, Asus and Microsoft have not released technical specifications or a firm launch date. However, industry insiders suggest a possible release sometime in 2025—fitting timing given that new Xbox hardware has been expected for a while.

Until then, the joint handheld project remains one of the most anticipated developments in the portable gaming scene. It could prove to be a well-calculated move by Microsoft and Asus to challenge Nintendo’s dominance just as the Switch 2 is making headlines.

One thing is clear: the so-called “ROG Ally Xbox” will likely come with a premium price tag. The current ROG Ally X with the Ryzen Z1 Extreme already retails for €899, making it significantly more expensive than what the Switch 2 is expected to cost.

Some speculate that Asus may unveil the new gaming handheld as early as the end of May during Computex. If true, the showdown between the next-gen Switch and the Xbox-powered ROG Ally could be one of the biggest hardware battles of 2025.