Microsoft is said to be developing an Xbox handheld gaming console, and details of the device's specifications have surfaced online. While Asus is expected to launch an Xbox-branded handheld device with a dedicated Xbox key in the coming months, Microsoft's device could be equipped with a low-powered processor developed by AMD, according to a leaker. Microsoft is also expected to launch its next-gen gaming console in 2027, which is expected to compete with the purported PlayStation 6.AMD to Develop Custom Chip for 'Real' Microsoft HandheldAccording to details shared by user KeplerL2 on the NeoGAF forums, Microsoft will use a custom low-power APU designed by AMD on its handheld gaming device. The leaker doesn't provide additional details related to the power consumption or the architecture of the processor.The user claims that the custom APU designed by AMD will be used on the "real" Xbox handheld from Microsoft. Meanwhile, the Xbox branded handhelds that are produced by other OEMs like Asus, will be equipped with other processors like the AMD Ryzen Z2 Extreme, Intel's Lunar or Panther lake CPUs, Nvidia's N1, and the Snapdragon X Elite 2.Previous rumours had suggested Microsoft's first-party device might be equipped with an Arm-based chip, which sparked concerns related to backwards compatibility. If the leaker's claim is accurate, then the Xbox handheld should offer compatibility with a wider range of titles.While there's no word on when Microsoft's own Xbox handheld console will make its debut, Asus is expected to launch an Xbox branded model soon. The Asus ROG Ally 2 was recently listed on the US FCC website alongside the 'Project Kennan' model, which appears in a black colourway with an Xbox button.The black variant of the ROG Ally 2 is reportedly powered by an AMD Ryzen Z2 ExtremeAPU, paired with 64GB of RAM. Meanwhile, the white variant has a less powerful AMD Aeirth PlusAPU. These models are expected to sport a 7-inch display with a 120Hz refresh rate.The next-gen ROG Ally console could debut soon with some notable hardware upgrades, and Asus previously teased its arrival via a post on X. At the time, the company didn't specify whether it would be an Xbox-branded device, but Microsoft responded to the post with a meme, which might have been a hint at the collaboration on the upcoming Project Kennan handheld device. #xbox #handheld #gaming #console #arrive