I've seen the report about Microsoft's Project Keenan, and just to be clear there is no first-party "Xbox handheld" arriving in 2025. Keenan is part of PC gaming handheld work with OEMs, like Microsoft's VP of Next Gen told us at CES https://www.theverge.com/2025/1/7/24338778/microsoft-xbox-handheld-pc-gaming
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There was no way they would be able to pull off a first party handheld all on their own this soon
It's going to be a partner to test the waters, which is the logical way to tackle this
Some even screenshot the headline, including the first sentence mentioning "partner device" and think that it's a first party device.
It's compelling, but how are they going to make me a buyer opposed to a ROG Ally or Legion Go - and in that context, does it even matter to them? Their store cut will remain the same on each device.