In that report, it was mentioned that Xbox's 2025 handheld is being made by ASUS (known for the ROG Ally series of handhelds) and it's set to feature a console-like interface, but will be powered by Windows like other PC handhelds.

Microsoft reportedly has plans set in motion to release its next Xbox in 2027. Along with the new console, there might be another handheld with this one being a proper Xbox handheld. What might happen is that the handheld is a lower-powered console, like the Xbox Series S, and the new home console will be more like the Xbox Series X.

A new report claims that Xbox fans should expect an Xbox-branded gaming handheld in 2025 and the next generation of console hardware in 2027.

Those rumors about Microsoft making it own Xbox handheld may have been hasty, but we could see the Xbox version of SteamOS instead.

A handheld device with the Xbox name might be releasing this year, but it just doesn't sound like something with the power to shake up the market.