Microsoft’s gaming chief, Phil Spencer, has been open about his fascination with creating an Xbox handheld device to rival top-notch handheld gaming PCs like the Steam Deck OLED and the Asus ROG Ally X. However, in a Bloomberg interview, he clarified that while Microsoft is interested in developing such a device, it won’t be hitting the shelves for quite a few years.
Spencer expressed to Bloomberg that the aim is indeed to develop something eventually, but fans should temper their expectations as it’s not likely to materialize soon. He emphasized a desire to innovate, saying, “In the long run, I’m enthusiastic about us building devices. I believe our team has the potential to innovate significantly, but we’re currently taking cues from existing learnings and current market conditions.”
At the moment, the priority seems to be enhancing the Microsoft Xbox app’s functionality on current handheld PC gaming devices and fine-tuning Xbox features and games for those platforms. Microsoft recently rolled out a UI update for the Xbox app on Windows, introducing a “compact mode” designed for mobile devices. Many reviewers, including myself, have noted that Windows 11 can be cumbersome on portable devices like the ROG Ally and Lenovo Legion Go.
The conversation with Bloomberg also highlighted Microsoft’s interest in further acquisitions, hot on the heels of their $69 billion purchase of Activision Blizzard in 2023. Additionally, Microsoft is venturing into mobile game stores, albeit with some delays.
The Steam Deck, launching back at the beginning of 2022, truly put modern PC gaming handhelds on the map. While it got an OLED refresh, no new chip upgrades with advanced gaming power have been announced, and Valve has indicated that a major update isn’t imminent. Most of the popular Windows handhelds are powered by AMD’s Ryzen Z1 Extreme, indicating that the handheld PC gaming market is still quite new and evolving.
Despite being in third place behind the Nintendo Switch and PlayStation 5, Spencer shared with Bloomberg that Xbox is thriving: “The business is performing well, suggesting a promising future for both hardware and the games we develop.” This growth can be attributed to the rise in PC and cloud gaming, complementing the traditional console market.
For an Xbox handheld to really stand out, it will need something unique to set it apart from competitors like the Steam Deck and Windows handhelds from companies like Lenovo, MSI, and Asus. The next couple of years in the handheld market could be thrilling, so any latecomer will need to bring something extraordinary to the table.
