Following reports earlier this week about Microsoft’s entry into the handheld gaming market, fresh details have emerged confirming that the first Xbox-branded handheld will, in fact, be manufactured by Asus.

Sources say that Asus and Microsoft are working together to build the first Xbox handheld gaming console for launch later this year.

The Asus ROG Ally, along with its premium sibling, the Asus ROG Ally X, stand among the best handheld gaming consoles you can get, so Microsoft would do well to partner up with the company for a new handheld device — especially if it comes with an all-new OS platform that caters to Xbox.

ASUSs upcoming Xbox handheld gaming console will run on Windows but will feature a more user-friendly Xbox interface to enhance the gaming experience.

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.

Earlier this week, it was reported that Microsoft was planning the release of an Xbox handheld that’s set to launch sometime in 2025, and it looks like that handheld is going to be manufactured by ASUS.