In a major bid to strengthen its gaming business, Microsoft is said to be working on a handheld Xbox console that will be powered by a custom low-power APU designed by AMD. The move reflects Microsoft’s effort to grow its gaming ecosystem and compete in the emerging handheld gaming space.
Based on a leak on the NeoGAF forums from user KeplerL2, the device will have a custom AMD processor that is designed for handheld gaming. Although some technical information is not specified, the custom chip is likely to ensure higher compatibility with many Xbox games, alleviating worries over backward compatibility as a result of previous rumors that the architecture would be based on ARM.
This follows Microsoft’s move to ready itself for the rumored release of its new-generation console in 2027 to compete against Sony’s speculated PlayStation 6. The handheld console is part of Microsoft’s bigger plan to provide gamers with cross-platform, flexible gaming experiences.
Meanwhile, Asus will be launching its Xbox-branded handheld, the ROG Ally 2, which has recently surfaced in FCC filings. The device, which is codenamed “Project Kennan,” has a unique black appearance with its own Xbox button, separating it from the white standard one. The black one comes with an 8-core AMD Ryzen Z2 Extreme processor and 64GB of LPDDR5X RAM, while the white one contains a 4-core AMD Aeirth Plus processor and 16GB of RAM. Both devices have a 7-inch, 120Hz LCD screen and better ergonomic grips.
Though the Asus ROG Ally 2 is powered by Windows 11, which grants access to Xbox PC apps and services such as Xbox Game Pass, Microsoft’s internal handheld will likely integrate a more holistic Xbox experience. The custom AMD processor may allow for reduced-gameplay latency across Xbox games, improving performance and user experience.
With the market for handheld gaming expanding, Microsoft’s introduction of a proprietary AMD-powered product represents a strategic broadening of its gaming platform. Additional information, such as the formal launch date and price point, is expected to be announced in the near future.