Microsoft and Asus Collaborate on Xbox-Branded Handheld Gaming Device

Microsoft and Asus have joined forces to develop a new handheld gaming device known as Project Kennan, an Xbox-branded version of the upcoming Asus ROG Ally 2. Recent leaked photos and regulatory filings have unveiled key details about this collaboration, highlighting a device designed to compete in the portable gaming market with distinctive Xbox features.

The Xbox-branded version is visually distinct with a black color scheme and a dedicated Xbox button located above the D-pad, setting it apart from the standard white Asus ROG Ally 2 model. This button is currently blacked out on the Asus version but will likely be replaced or removed in production.

Hardware enhancements include dual USB-C ports for versatile connectivity and redesigned molded controller grips that are thicker and potentially more comfortable than the previous generation. These ergonomic improvements aim to enhance the handheld gaming experience during extended play sessions.

Under the hood, the Xbox edition is powered by an 8-core, 36W AMD Ryzen Z2 Extreme CPU, delivering robust performance for demanding games. In contrast, the white Asus model features a less powerful 4-core, 20W processor. Both devices sport a 7-inch, 120Hz LCD display, maintaining the visual quality of the original ROG Ally.

Certification processes are underway, indicating that a launch is imminent. Asus typically unveils new hardware at Computex, which is scheduled for May 20th, 2025—just one day after Microsoft's Build conference begins. This timing suggests a coordinated effort to showcase the new handheld device to developers and consumers alike.

Broader Significance and Opportunities

The collaboration between Microsoft and Asus on Project Kennan represents a strategic move to capture the growing handheld gaming market, blending powerful hardware with Xbox’s extensive gaming ecosystem. For developers, this opens new avenues to create optimized games and applications tailored for portable devices with high-performance capabilities.

The device’s enhanced ergonomics and connectivity options also suggest a focus on user comfort and versatility, which can influence software design considerations such as control schemes and peripheral support. Businesses and tech leaders should anticipate shifts in gaming consumption patterns and consider integrating support for such devices in their development roadmaps.

As the launch approaches, staying informed about the hardware specifications and platform capabilities will be crucial for maximizing the potential of Project Kennan. This collaboration exemplifies how hardware innovation paired with established gaming ecosystems can redefine portable gaming experiences.