As reported by Windows Central, Microsoft has shelved plans to develop its handheld gaming gadget. The Redmond-based tech firm said it would focus on third-party portable opportun

Windows Central then threw more fuel on the fire when it reported on Microsoft’s strategy, which will see the company not only team up with a third-party on an Xbox-branded portable PC codenamed “Kennan” but also continue to work on its device, launching alongside the successor to the Xbox Series X/S in 2027.

Microsoft puts Xbox handheld plans on hold to focus on Windows 11 PC gaming optimization. Despite internal shift in priorities, Microsoft is still investing in developing own Xbox portable. Sony also reportedly working on PS5 handheld to rival Nintendo Switch,