Microsoft's upcoming Xbox handheld will reportedly be made by Asus, and it aims to take on Steam Deck by delivering a new OS to bring "the best of Xbox and Windows."

Microsoft is prepping a new handheld version of its Xbox console that could be launched later this year. Meanwhile, plans are afoot to replace the existing Xbox Series S and X consoles in 2027. If you're wondering how Microsoft could be launching a handheld Xbox so soon,

It took a few years of dealing with poorly optimized handheld PCs, but Windows Central reports Microsoft may finally be working on an Xbox handheld. The company could announce an Xbox-branded portable device as early as this year,