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In a blink-and-you’ll-miss-it moment that set gaming forums ablaze, the NBC Today Show may have accidentally pulled back the curtain on one of Microsoft’s most tightly kept secrets. While touring a confidential Xbox hardware lab, the camera briefly panned to Phil Spencer’s office—an area known for housing Xbox relics and early design experiments. Among the memorabilia sat something far more curious: a handheld console with Xbox branding that doesn’t match any known prototype, including the rumored Project Kennan.
For years, whispers of a portable Xbox have floated through the gaming world, sometimes surfacing as patents or vague interviews. This time, the evidence was visual. The device shown had a familiar layout—your standard face buttons, analog sticks, and directional pad—but with an unusual pair of buttons placed below the right stick. That detail stood out because it didn’t align with known handhelds like the Asus ROG Ally or even the Kishi V2 controller. If it were simply a third-party gadget, it would be odd to see it so prominently displayed in Spencer’s workspace.
Designer: Xbox
Sneak peek shown during interview by NBC Today
The speculation machine kicked into high gear almost immediately. Notably, this handheld doesn’t resemble the white Asus-made prototype recently teased online, which many believe is Project Kennan. That device, expected to run a Windows-based platform with an Xbox-specific UI, has been anticipated as Microsoft’s official answer to Steam Deck and ROG Ally dominance. But what Spencer had might suggest something either earlier in the dev cycle—or a different approach entirely.
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It wouldn’t be the first time Microsoft tested competing ideas under the same umbrella. During a 2024 podcast, Xbox insider Jez Corden mentioned several portable Xbox prototypes floating around internally. Some of those designs were shared privately, and at least one bears a strong resemblance to the mystery device shown in the NBC segment. Spencer himself has alluded to a desire for a handheld console, often referencing a hybrid design that borrows the best from both Windows and Xbox platforms.
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What makes this sighting fascinating is its context. NBC’s tour wasn’t about announcing hardware—it was framed around showing the behind-the-scenes process of testing and validating Xbox peripherals. Seeing a potential next-gen product in that environment suggests it’s in active evaluation, not just some archival curiosity. Everything on Spencer’s shelves is deliberate, often foreshadowing what Microsoft is cooking up.
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While we only caught the right half of the device, its physical presence raises real questions. Is this a shelved concept? A backup plan if Project Kennan falters? Or a step beyond it? Some fans think the layout implies a more gamepad-centric experience than the current PC-first handhelds. It might be optimized for streaming or even native gameplay, something more plug-and-play for casual users rather than the tinkering crowd drawn to SteamOS or Windows handhelds.
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The broader implication is clear: Xbox isn’t content staying stationary. Handheld gaming is surging again (especially with the Switch 2 just getting officially announced last week), and Microsoft has the software library, infrastructure, and now—potentially—the hardware to make a serious play. Between Xbox Cloud Gaming, Game Pass, and a growing appetite for on-the-go experiences, a portable device could tighten the ecosystem while expanding Xbox’s reach to new audiences.
Image source: ThinkComputers
We may not see this particular handheld on shelves anytime soon. It could be a relic from a branch of development that’s since pivoted. Or it might resurface, refined and ready, when the timing aligns with the next major Xbox cycle. What’s certain is that the door is wide open—and the race for the perfect Xbox handheld is heating up behind it.
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