In perhaps even bigger news than the 'Xbox Ally' handheld itself, Microsoft is starting to revamp Windows 11 to boost PC gaming

During the Xbox Showcase today, Microsoft and ASUS unveiled Project Kennan, now known as the Xbox Ally and Xbox Ally X.

The Xbox Kennan project was exclusively revealed by us a few weeks ago, and promised a partnership between Microsoft and ASUS on a PC gaming handheld.

I was initially a bit sceptical of this project, based on what I'd heard. Microsoft hasn't exactly treated Windows 11 customers the best over the last few years, with corporate's laser focus on revenue at all costs, often to the detriment of the customer experience. At least for gamers, that changes today.

In perhaps biggest news than the Xbox Ally hardware itself, Microsoft, Xbox, and the Windows team are revamping how the OS operates for gaming in general, which could result in massive performance boosts and prep the OS for a new ecosystem of interesting devices.

In early tests, the new Xbox app features reduce Windows idle power consumption by up to 66%

The new Xbox Ally and Xbox Ally X features a range of new Windows 11 features that are, for now, going to be exclusive to these devices. But Microsoft says they will become available for existing PC gaming handhelds like the Lenovo Legion Go starting in early 2026, with the ASUS ROG Ally and ASUS ROG Ally X getting enhancements first towards the end of 2025.

Microsoft wants the Xbox Ally range to feel as much like a "handheld console" experience as humanly possible. Up until now, the biggest criticism of devices like the ASUS ROG Ally and the like has revolved around Windows itself, and Microsoft hasn't taken that criticism lying down.

Over the past year, Microsoft has been working to prepare Windows 11 for this new gaming paradigm. The biggest improvements revolves around simply accessing the device. Now, you will be able to log into the device using the controller itself, much like you can on an Xbox console, using the buttons and triggers to correspond to different passcode buttons. But the fun doesn't end there.

Although you will still be able to launch Steam and other PC gaming storefronts (and even set them as the default), the Xbox Ally's new Xbox PC app will also run in full screen mode, mimicking Steam's Big Picture Mode for maximum controller usability. This isn't just a cosmetic feature, though. While running in this mode, the Xbox PC app will reduce Windows 11's idle power consumption overheads by two thirds, sending all those gains into battery life and efficiency.

Additionally, the Xbox PC app will shut down all processes that aren't related to gaming automatically, including the Desktop itself. Whether it's search indexing or Office background processes or Copilot, Microsoft reckons this feature will free up to 2GB of RAM to help boost gaming performance too.

Where Windows 11 tends to excel is versatility, but that adaptability often comes at performance and battery life costs. Despite these new features aimed at curtailing Windows 11's power consumption requirements, Microsoft isn't reducing the versatility of Windows 11, and is in fact boosting it further for controllers.

A new alt tab interface will be present on the Xbox Ally and Xbox Ally X, that works a bit more like the multitasking interface you might've sooner expected on iOS and Android (or indeed, Windows Phone). You will be able to access other apps like Twitch or YouTube on Microsoft Edge or Chrome, Discord, WhatsApp, or whatever else, using your controller and an on-screen controller keyboard on top. You won't have to fiddle around with the Desktop or smudge fingerprints all over the screen to access other apps and services.

Microsoft was keen to stress the demonstrations they showed us were early days yet, and that they were hoping for even greater performance enhancements as these tools and features develop in the coming months ahead.

The same Windows versatility, now with boosted efficiency

Although it's probably too early to say if the performance enhancements will lead to tangible benefits while actually inside games, Microsoft has surely noticed reports that SteamOS is far more efficient than Windows 11 for devices of this paradigm. It's good to know that Microsoft isn't resting on its laurels here, and is in fact, far further along at meeting the criticisms than I previously expected.

I'm still reluctant to call it all a home run yet, though, until we get hands-on access later this summer, hopefully at Gamescom. But the effort is incredibly promising.

Even on my aging Lenovo Legion Go, the new Xbox Game Bar and Xbox PC app updates have been a huge boon to the usability of that device in general. Adding these additional features in next year will make it even better, too.

Much like SteamOS and Proton itself, the project to improve Windows 11 for gaming is going to be an on-going one. Microsoft also needs to do more to get developers to even support the Xbox PC store organically, with the vast majority of publishers skipping Xbox PC in favor of Steam, despite the more generous revenue split.

Either way, it's an incredibly exciting path Microsoft has embarked on here. The Xbox enhancements for Windows 11 will have benefits beyond PC gaming handhelds. They could even benefit living room PC rigs, handheld tablets, and heck, maybe even Windows 11 phones some day. Look, let me dream, okay?