<ul><li>Microsoft is reportedly delaying its Xbox native handheld to focus on optimizing Windows 11 for third-party handheld gaming PCs.</li><li>The 'Project Kennan' handheld collaboration with Asus is still in progress as Microsoft shifts its priorities in response to Valve's success with SteamOS on non-Steam Deck handhelds.</li><li>Valve's support for non-Steam Deck handhelds has prompted Microsoft to reconsider its approach to handheld gaming, with Windows 11 lacking a dedicated 'handheld' mode for a streamlined gaming experience.</li><li>Microsoft's action highlights the impact of consumer feedback, with Valve's success being a catalyst for the tech giant to take handheld gaming and Windows 11 optimization more seriously.</li></ul>

Xbox handheld reportedly delayed so Microsoft can focus on making Windows handhelds compete with SteamOS

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