With the retirement of the cheapest Steam Deck and a $100 discount on the ROG Xbox Ally, the $500 Windows handheld is ...
Handheld gaming PCs have had an operating system problem since day one. Windows 11 is simply not optimized well for handheld gaming PCs, leaving SteamOS as the preferred handheld operating system.
TL;DR: ASUS teased a new Windows-powered handheld device, similar to the ROG Ally, with Xbox branding. This device, linked to Project Kennan, is not a native Xbox handheld but a third-party product.