Images of two upcoming handheld gaming devices—one from Xbox and another from ASUS—have leaked online, and they’re stirring up serious interest among gaming insiders and hardware enthusiasts alike. The devices in question are the ASUS ROG Ally 2 and a previously unannounced Xbox-branded variant codenamed Project Kennan, both expected to be formally unveiled later this month.

The leaks come via regulatory filings submitted to the U.S. FCC and Indonesia’s certification agency, which included high-resolution images and detailed hardware information. Though neither Microsoft nor ASUS has issued a statement, the timing suggests an official reveal is imminent—possibly at Microsoft’s Build conference on May 19 or during Computex 2025, which begins May 20.

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Two Handhelds, One Goal: Dominating the PC Gaming Market

The ASUS ROG Ally 2 looks to be a refined iteration of its predecessor. Based on the leak, it sports a sleeker chassis, improved ergonomics, and a 7-inch 120Hz LCD screen. Under the hood, it’s powered by a 4-core AMD Aerith Plus processor with a 20W TDP—aimed at balancing performance and battery life.

Where things get interesting is with the Xbox version.

Codenamed “Project Kennan,” this device is essentially a rebranded and significantly upgraded ROG Ally 2, customized in partnership with Microsoft. It ditches the white casing in favor of a sleek black shell and includes a dedicated Xbox button alongside customized UI integration for Game Pass and Xbox Cloud Gaming.

Specs-wise, Project Kennan is no slouch. It packs an 8-core AMD Ryzen Z2 Extreme chip, a massive 64GB of LPDDR5X RAM, and a 36W TDP—clearly signaling its role as a full-fledged handheld PC competitor. This isn’t just a streaming box or mobile companion; it’s a real gaming machine built to run native Windows 11 and handle AAA PC titles.

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Designed With Game Pass In Mind

According to sources familiar with Microsoft’s hardware roadmap, Project Kennan has been in development since mid-2023. The company’s goal? To deliver a handheld Windows device that integrates tightly with the Xbox ecosystem while also functioning as a standalone gaming PC.

The leaked images also suggest UI changes tailored for handheld use, with rumors pointing to a custom Xbox launcher built on top of Windows 11—similar to Steam Deck’s Big Picture mode. If true, this would address one of the biggest pain points with other handheld Windows PCs: navigating desktop UI on a 7-inch touchscreen.

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Industry Timing & Competitive Positioning

With handheld gaming heating up thanks to the Steam Deck, Lenovo Legion Go, and MSI Claw, Microsoft and ASUS appear ready to compete directly in the premium handheld segment. While ASUS brings hardware know-how, Microsoft brings platform power with Game Pass, xCloud, and native PC gaming support.

Sources tell Insider Gaming that ASUS is planning to showcase both devices during Computex, with potential pre-orders opening in early June. Pricing has yet to be confirmed, but early speculation places the standard ROG Ally 2 around $699 USD and Project Kennan pushing closer to $899 USD due to its higher-end specs and Xbox integrations.

These leaks mark a bold step for Xbox. While not technically a first-party handheld console, Project Kennan could serve as Microsoft’s stealthy entry into a space long dominated by Nintendo and, more recently, Valve. The real question now is whether Microsoft can execute a seamless user experience that rivals the simplicity of Steam Deck while offering the power and flexibility of a true PC.

With an announcement likely just weeks away, the handheld gaming landscape may be about to shift again—this time with Xbox leading the charge.