Phil Spencer, head of Microsoft gaming, has openly expressed his interest in developing an Xbox handheld that could rival top-tier handheld gaming PCs like the Steam Deck OLED and Asus ROG Ally X. However, in a recent chat with Bloomberg, he mentioned that such a device won’t be hitting the market anytime soon.
Spencer shared that while there’s an expectation for Microsoft to explore this avenue, we shouldn’t anticipate its release in the immediate future. “In the long run, I love the idea of us crafting new devices,” he remarked. “I believe our team has the potential to innovate significantly, but we want to learn from what’s currently happening before we dive in.”
At the moment, Microsoft seems more focused on enhancing the user experience of its Xbox app across existing PC gaming handhelds. They’re working on ensuring Xbox features and games integrate seamlessly with these devices. A recent announcement highlighted an update to the Xbox app for Windows, introducing a “compact mode” tailored for mobile devices. Many reviewers, including myself, have criticized Windows 11 for its performance on handhelds like the ROG Ally and Lenovo Legion Go.
The interview also disclosed that Microsoft is keen on pursuing additional acquisitions following its massive $69 billion acquisition of Activision Blizzard in 2023. Additionally, Microsoft is developing mobile game stores, although these have faced some delays.
The introduction of the Steam Deck in early 2022 revitalized interest in modern PC gaming handhelds. Despite receiving an OLED update, it hasn’t yet upgraded its chip for enhanced gaming prowess, and Valve has hinted that no immediate refresh is on the horizon. Most popular Windows handhelds are powered by AMD’s Ryzen Z1 Extreme, marking this as a nascent generation for PC gaming handhelds.
Meanwhile, Spencer assured Bloomberg that the Xbox division is performing satisfactorily despite trailing behind the Nintendo Switch and PlayStation 5 in sales. He commented, “The business is performing right now, and I think that means a more healthy future for hardware and the games we build.” This success stems from an increase in PC and cloud gaming alongside their traditional console business.
Should an Xbox handheld emerge in the future, it will need to set itself apart significantly from existing devices like the Steam Deck and the Windows-based options from Lenovo, MSI, and Asus. With some potentially exciting developments in those intervening years, Microsoft’s delayed entry will have to offer something truly groundbreaking.
