United Kingdom, May 30 -- Xbox's first-party handheld console has reportedly been "sidelined".

Microsoft is said to have been working on its own portable device as well as a third-party handheld with ASUS dubbed 'Project Kennan', though Windows Central has now claimed Xbox has shifted its focus away from its own portable console and toward "improving Windows 11 for third-party handhelds".

According to the outlet, Xbox has shelved its first-party portable device for the moment, and is now prioritising its teams to optimise the operating system for ASUS's 'Kennan'.

Windows Central asserts Microsoft is "still deeply investing in developing its own Xbox gaming handheld technology in the future", though the company is currently focused on i...