Perhaps it's just a coincidence that this happened during the same week a 2025 Xbox handheld was reported on, but I really doubt it. Microsoft is seemingly very keen to provide as many cross-compatible games as possible on this ASUS-branded handheld when it arrives, and that ultimately benefits all PC users even if they're not planning on buying this specific device.
Apparently there's a big focus in general on trying to unify Xbox & PC this year over at Microsoft HQ, and while that may not have been initiated by this handheld, it should certainly lead to some swift progress throughout the year. Hopefully this means more Xbox console games coming to PC, more games getting Xbox Play Anywhere compatibility, more UI elements crossing over from the Xbox Series X and S, and various other improvements.
"Windows Central: I've heard that Microsoft is committed to some pretty heavy work on Windows to really make this partner device feel as close to an "Xbox" as possible. The device will essentially exist as a proof of concept of sorts, and be developed with feedback from users in the coming months."
Looking ahead a bit further, it's also been reported that Microsoft is interested in making a first-party Xbox handheld that could arrive around 2027, but the 2025 version will almost certainly inform a lot of decisions that are made over the next couple of years. How will consumers react to it? Will it sell as many units as expected? Would a lack of native console game support be a total deal-breaker? I highly doubt 2027 is set in stone for whatever kind of handheld Microsoft has in mind for the future - there's surely room to maneuver based on feedback for the 2025 version.
There's also this whole thing about game preservation that Xbox is actively working on right now. Around this time last year, a new team was reportedly formed to focus on "game preservation and forward compatibility" at Xbox, which has led some to speculate whether it was intended (or at least partly intended) to bring console games to an Xbox handheld in the future. It might not happen for the 2025 one, but perhaps an experiment or two might be trickled in throughout its lifespan? We'll have to wait and see.
At the end of the day, this does primarily seem to be an ASUS ROG Ally with Xbox-specific features based on what we're hearing at the moment, but considering it's set to be the first Xbox handheld to ever hit the market in any fashion, I expect Microsoft will be giving it the star treatment with lots of cool upgrades over the next couple of years. It could also end up having a major impact on where the brand goes next - a new generation is looming, and if Xbox is to come out swinging in 2027 (or whenever it is), the lessons from this device could end up proving invaluable.