From a purely logical standpoint, Asus as a hardware partner makes a lot of sense given it already has the ROG Ally, which is a fairly robust Windows 11 handheld PC that can run games in the Xbox Game Pass PC catalog both natively and via cloud-powered streaming.

Following reports earlier this week about Microsoft’s entry into the handheld gaming market, fresh details have emerged confirming that the first Xbox-branded handheld will, in fact, be manufactured by Asus.

A flurry of new details about Microsoft's Xbox handheld have emerged. Leaks have revealed the OEM, the target price, and more.