Microsoft's own Xbox handheld is "essentially cancelled"

Microsoft has reportedly shelved its internal Xbox handheld project to focus on collaborating with PC makers like Asus on Xbox-branded portable devices. This comes as Asus unveils two new ROG Xbox Ally handhelds running Windows 11 with a specialized "Xbox Experience for Handheld" interface. The devices are expected to launch for the holiday season, though pricing remains unannounced. Meanwhile, Microsoft continues development on its next-gen Xbox console, promising the "largest technical leap" ever for a new hardware generation.