When is Microsoft entering handheld console market?

Microsoft is reportedly developing a new handheld console, codenamed "Keenan," in collaboration with a renowned manufacturer, marking its first official entry into the handheld market.

The handheld console is expected to launch later this year, featuring an "unmistakably Xbox" design and run on Windows 11.

Notably, the tech giant's interest in developing a handheld console has been rumoured for several months, with Xbox Head Phil Spencer, back in 2017, hinting at the potential launch in mid-2024.

For the handheld device, Microsoft is working with the well-known PC gaming OEM.

The handheld console will focus on gaming and will be an alternative to existing devices such as the ASUS ROG Ally, Lenovo Legion Go, and Valve's Steam Deck.

The device will allow the installation of third-party programmes such as the Epic Games Store and Steam.

The handheld console will utilise the Microsoft Store, Game Pass, and cloud gaming options, with potential improvements through artificial intelligence (AI).

The new handheld will most likely be priced at $500 but it can go higher than that.

In addition to the third-party handheld console, Microsoft has reportedly approved a new generation of devices, including a premium desktop console and a proprietary Xbox handheld console.

Microsoft’s upcoming projects aim to revitalise the brand after a decline in sales in recent years.