Phil Spencer, the head of gaming at Microsoft, isn’t shy about his interest in the possibility of an Xbox handheld. This move would see Xbox competing with some of the top handheld gaming PCs like the Steam Deck OLED and the Asus ROG Ally X. However, as revealed in a candid chat with Bloomberg, this concept isn’t hitting shelves anytime soon.
During this conversation, Spencer mentioned that while there is a definite interest and the expectation of eventually developing such a device, it’s not something fans should anticipate in the immediate future. “Long-term, I’m enthusiastic about us creating devices,” Spencer remarked. “I believe our team can deliver some genuinely innovative inventions, but it’s crucial for us to learn and adapt to the current trends,” he added.
For the moment, Microsoft’s attention is directed towards enhancing the Xbox app experience on existing PC gaming handhelds, ensuring Xbox functionalities and games run seamlessly on these devices. Recently, they rolled out a new UI update for the Xbox app on Windows, introducing a “compact mode” specially tailored for mobile devices. While Windows 11 has received criticism from many, including myself, for its less-than-ideal performance on handheld gaming consoles like the ROG Ally and Lenovo Legion Go, improvements are underway.
The interview also hinted at Microsoft’s ongoing interest in expanding its portfolio even further following its colossal $69 billion purchase of Activision Blizzard in 2023. On the mobile front, Microsoft is working on game stores, though these efforts have experienced some delays.
Ever since the Steam Deck made its debut in early 2022, it has become synonymous with modern PC gaming handhelds. It did receive an OLED facelift, but there hasn’t been a major update in terms of a new, more powerful chip, and Valve isn’t in a rush to launch one either. The bulk of popular Windows-based handhelds rely on AMD’s Ryzen Z1 Extreme, meaning the segment is still very much in its infancy.
Despite Xbox trailing behind the Nintendo Switch and PlayStation 5, Spencer conveyed to Bloomberg that the Xbox division is thriving: “Our business is currently performing well, which bodes well for the future of our hardware and game development.” The growth is largely attributed to increased engagement in PC and cloud gaming alongside the existing console dynamics.
For an Xbox handheld to stand out, it must bring something unique to the table compared to the Steam Deck and Windows machines from the likes of Lenovo, MSI, and Asus. Although it might take a few years, this potential device might just bring some thrilling developments to the handheld gaming scene.