A new report into Microsoft's handheld gaming console plans appears to indicate that the company is putting its own first-party Xbox handheld on the back burner in order to prioritize Windows 11 gaming handheld optimization and the third-party offering from Asus, dubbed 'Kennan', as reported by Windows Central.
It's possible that this move from Microsoft is in response to the widespread success users have had using SteamOS on Windows 11-compatible handhelds. We recently covered the Lenovo Legion Go S handheld and its support for both SteamOS and Windows 11. There are a few caveats in running SteamOS, for example, the loss of Game Pass support. However, users who don't mind these sacrifices have noticed great performance output from SteamOS.
