Phil Spencer, the head of Microsoft Gaming, hasn’t been shy about his interest in creating an Xbox handheld device to stand alongside top-tier handheld gaming PCs like the Steam Deck OLED and Asus ROG Ally X. However, during a conversation with Bloomberg, Spencer indicated that such a device is not on the horizon for the near future.
In the interview, Spencer mentioned that while there’s an “expectation” that Microsoft would eventually roll out a handheld, fans shouldn’t anticipate its release for several years. He shared, “In the long run, I’m enthusiastic about us developing new devices. I truly believe our team has the potential for innovative breakthroughs. That said, we aim to be guided by learning and current trends.”
For now, Microsoft is concentrating on enhancing the Xbox app experience on today’s PC gaming handhelds and refining how Xbox features and games perform on these platforms. Recently, they introduced a “compact mode” UI update for the Xbox app on Windows, tailored for mobile devices. Reviewers have often pointed out Windows 11 as a drawback for handhelds like the ROG Ally and Lenovo Legion Go, myself included.
Additionally, the interview unveiled that Microsoft’s appetite for further acquisitions continues, even after its substantial $69 billion acquisition of Activision Blizzard in 2023. The company is also venturing into mobile games stores, though these have faced setbacks.
The release of the Steam Deck in early 2022 marked a turning point for the modern PC gaming handheld market. Even with an OLED update, it lacks a more powerful gaming chip, and Valve has hinted that an upgrade won’t be arriving anytime soon. The dominant Windows devices often feature AMD’s Ryzen Z1 Extreme chip, meaning the handheld gaming scene is mostly in its early stages.
During his chat with Bloomberg, Spencer noted that the Xbox business is thriving despite trailing behind the Nintendo Switch and PlayStation 5. He explained, “The business is doing well right now, which bodes well for the future of our hardware and the games we create.” He credits the growth to increased engagement with PC and cloud gaming alongside their traditional console business.
If Microsoft does decide to throw its hat into the handheld ring, the Xbox device will need to carve out a unique niche compared to the Steam Deck and the various Windows handhelds from brands like Lenovo, MSI, and Asus. There’s potential for exciting developments in these upcoming years, so a late entry will need to offer something distinctly thrilling.
