Xbox Handheld to Use Custom AMD Chip, Not ARM

Xbox Handheld to Feature Custom AMD APU, Not ARM – Rumor Suggests

Recent speculation surrounding Microsoft’s upcoming Xbox handheld device is being challenged by fresh insights. Despite earlier reports hinting at a possible ARM-based design, a trusted AMD leaker, KeplerL2, has revealed on NeoGAF forums that the handheld will instead feature a custom low-power APU from AMD.

This move stays consistent with Microsoft’s reliance on AMD for its previous Xbox hardware. The shift away from ARM architecture means better compatibility with the current Xbox game library, ensuring a smooth transition for users and developers alike. Though ARM offers energy efficiency—a plus for handheld devices—it would have sacrificed backward compatibility, which is a key part of Xbox’s current ecosystem strategy.

While the official Game handheld is still in development, Microsoft is reportedly testing the waters with Xbox-branded handhelds developed with multiple OEMs. These will use a variety of available APUs, such as AMD Z2E, Intel’s Lunar/Panther Lake, Qualcomm’s X Elite 2, and NVIDIA’s N1.

The first of these branded handhelds, Project Kennan, is being developed in collaboration with ASUS. It will run on Windows and feature an Xbox-style UI, possibly offering a glimpse into Microsoft’s future mobile gaming ambitions. Project Kennan is expected to launch before the end of the year.