Microsoft Executive Indicates Xbox Handheld Console is Still Years from Release

Phil Spencer, the head of Microsoft’s gaming division, hasn’t hidden his curiosity about potentially developing an Xbox handheld device to go toe-to-toe with leading handheld gaming PCs like the Steam Deck OLED and Asus ROG Ally X. However, during a conversation with Bloomberg, Spencer clarified that such a device isn’t on the immediate horizon.

In the discussion, Spencer acknowledged the possibility, saying, “We might explore this avenue,” but advised gamers not to get their hopes up for a release in the near future.

“Looking further ahead, I love the idea of us creating new devices,” Spencer shared with Bloomberg. “I believe our team is capable of innovating in exciting ways, but we want to learn and absorb what’s currently unfolding in the industry first.”

At present, Microsoft appears focused on optimizing the performance of its Xbox app across the existing range of PC gaming handhelds. Part of this effort includes enhancing the integration of Xbox features and games on these devices. Recently, Microsoft introduced an update to the Xbox app for Windows, unveiling a “compact mode” tailored for mobile devices. Many reviewers, myself included, have noted that Windows 11 hasn’t been the best fit for handhelds like the ROG Ally and Lenovo Legion Go, so this update is a timely improvement.

The conversation with Bloomberg also uncovered Microsoft’s continued interest in further acquisitions, despite already making headlines with its massive $69 billion acquisition of Activision Blizzard in 2023. Additionally, Microsoft is developing mobile game stores, although their release has been postponed.

The launch of the Steam Deck in early 2022 revitalized the PC gaming handheld market. While it has received an OLED upgrade, there’s been no new chip enhancing its gaming prowess, and Valve seems in no hurry to roll out an updated version. The majority of sought-after Windows handhelds are powered by AMD’s Ryzen Z1 Extreme, meaning the technology is still largely in its early stages.

Until then, Spencer assured Bloomberg that despite being in third place behind Nintendo Switch and PlayStation 5, the Xbox business is thriving. He noted, “Our performance right now indicates a bright future for both our hardware and the games we develop,” crediting the growth of PC and cloud gaming alongside the traditional console space for this optimistic outlook.

For an Xbox handheld to stand out, it must distinguish itself significantly from the Steam Deck and Windows-based devices from Lenovo, MSI, and Asus. The coming years promise to be dynamic in the gaming landscape, and entering the handheld market later will require Microsoft to offer something truly innovative to capture attention.