Phil Spencer, the head of Microsoft gaming, has openly expressed his enthusiasm for developing an Xbox handheld device to compete with the likes of handheld gaming PCs, such as the Steam Deck OLED and Asus ROG Ally X. However, in a chat with Bloomberg, Spencer clarified that we shouldn’t anticipate seeing this device hit the shelves anytime soon.
Discussing the project, Spencer mentioned, “There’s an expectation for us to eventually create something, but it’s not on the immediate horizon.” His words suggest that while Microsoft is interested, a handheld launch won’t happen for several years.
Spencer elaborated, stating, “In the long run, I’m thrilled about our potential in creating devices. I think our team can come up with some truly innovative solutions, but right now, we’re focusing on learning from existing trends and developments.”
For the present moment, Microsoft is concentrating on enhancing the Xbox app experience on current PC gaming handhelds and improving the integration of Xbox features and games on these platforms. Recently, they rolled out an update to the Xbox app for Windows, introducing a “compact mode” designed for mobile devices. Windows 11, despite its merits, often gets criticized (myself included) as lacking optimization for handhelds like the ROG Ally and Lenovo Legion Go.
The interview also shed light on Microsoft’s ongoing interest in acquisitions, following its $69 billion acquisition of Activision Blizzard in 2023. There’s also talk of Microsoft working on mobile game stores, though they’ve experienced some delays.
When the Steam Deck launched in early 2022, it set a new standard for modern PC gaming hand-helds. While it received an OLED upgrade, it has yet to see a rework with more powerful gaming chips, with Valve suggesting that a new version isn’t on the immediate docket. For now, AMD’s Ryzen Z1 Extreme powers the majority of popular Windows handhelds, which indicates the gaming handheld market is still in its early stages.
Despite being third in the console race behind the Nintendo Switch and PlayStation 5, Spencer reassures that Xbox is thriving: “The business is doing well currently, promising a robust future for our hardware and games.” This success is attributed to the growing influence of PC and cloud gaming alongside traditional consoles.
If Microsoft does launch an Xbox handheld, it’ll need to stand out significantly from competitors like the Steam Deck and devices from Lenovo, MSI, and Asus. Although it’s several years away, it could make for an exciting addition to the landscape, provided it brings something unique to the table.
