Phil Spencer, Microsoft’s gaming chief, has openly shown interest in developing an Xbox handheld device to rival top-tier portable gaming PCs like the Steam Deck OLED and Asus ROG Ally X. However, during a chat with Bloomberg, Spencer indicated that such a device isn’t on the immediate horizon.
Spencer explained to Bloomberg that while there’s an “expectation” for Microsoft to eventually venture into this space, enthusiasts shouldn’t hold their breath just yet, as it’s still a few years down the line.
“I love the idea of us creating new devices in the long run,” Spencer conveyed to Bloomberg. “I believe our team is capable of some truly groundbreaking work, but we need to be guided by current learning and trends.”
At present, the focus seems to be enhancing the Microsoft Xbox app experience on existing PC gaming handhelds and optimizing Xbox features and games for those platforms. Not long ago, Microsoft unveiled a new compact mode update for the Xbox app on Windows, targeting mobile device efficiency. Both my reviews and those of others have highlighted Windows 11 as a current limitation on devices like the ROG Ally and Lenovo Legion Go.
The interview also touched on Microsoft’s ongoing acquisition ambitions, following their substantial $69 billion purchase of Activision Blizzard in 2023. Meanwhile, they are also developing mobile game stores, although these have encountered some delays.
The launch of the Steam Deck in early 2022 brought the modern PC gaming handheld into the limelight. Although it received an OLED enhancement, there’s no immediate plan for a more powerful chip update from Valve. Most popular Windows handhelds still rely on AMD’s Ryzen Z1 Extreme, keeping the market largely in its first phase.
Despite being placed third behind the Nintendo Switch and PlayStation 5, Spencer assured Bloomberg that the Xbox business is thriving: “Our current performance sets the stage for a more robust future in both our hardware and game development.” A major factor in this success is the expansion of PC and cloud gaming, complementing their existing console operations.
For an Xbox handheld to stand out, it would need to significantly set itself apart from the Steam Deck and Windows-based competitors from Lenovo, MSI, and Asus. The next few years seem promising, and any later release will need to bring something impressively innovative.
