According to Warren, Microsoft's larger goal is to unify Windows and Xbox with a universal library of PC and Xbox games. He says the Xbox handheld being made by ASUS will run a version of Windows but with an interface that's more akin to the GUI on Xbox consoles.

Those rumors about Microsoft making it own Xbox handheld may have been hasty, but we could see the Xbox version of SteamOS instead.

Project Kennan will have Xbox branding, so we visualize it as something like the Ally X that has Xbox branding instead of ASUS’ ROG branding. There are reports that it might launch later this year, though The Verge notes that the project is still in its development phase. As for software, it will still run Windows, but will adopt an Xbox interface.

New Xbox handheld reports say Asus, the creator of the ROG Ally line of handheld gaming PCs, is partnering with Microsoft on the project.