Phil Spencer, the head of gaming at Microsoft, hasn’t been shy about his interest in developing an Xbox handheld to compete with the big players in the portable gaming market, like the Steam Deck OLED and Asus ROG Ally X. However, in a conversation with Bloomberg, Spencer shared that gamers shouldn’t hold their breath for this device to hit the shelves anytime soon.
During the interview, Spencer explained that while there is an “expectation” for Microsoft to eventually release such a device, it’s still a few years away. “I love us building devices for the longer term,” he said to Bloomberg. “Our team has the potential to innovate, but we want to make informed choices based on what we learn from the current market.”
For now, Microsoft seems to be focusing on enhancing the Xbox app experience across the existing range of PC gaming handhelds. This includes ensuring Xbox features and games run smoothly on these devices. Recently, they rolled out a UI update for the Xbox app on Windows, introducing a “compact mode” tailored for mobile devices. Critics, myself included, have often pointed out Windows 11 as a weak link for handheld devices, such as the ROG Ally and Lenovo Legion Go.
The interview also touched on Microsoft’s appetite for further expansion, following its massive $69 billion purchase of Activision Blizzard in 2023. The company is also working on rolling out mobile game stores, though there have been some delays.
The Steam Deck, which launched in early 2022, really put the spotlight on modern handheld PC gaming. Despite its OLED screen upgrade, it hasn’t seen a major chipset update, and Valve doesn’t seem to be in a rush with an immediate successor. In terms of performance, AMD’s Ryzen Z1 Extreme is the go-to for most popular Windows handhelds, leaving the PC gaming handheld scene as something still in its early stages.
Meanwhile, Spencer shared that the Xbox side of the business is thriving, despite being in third place behind the Nintendo Switch and PlayStation 5. He noted, “The business is performing right now, which bodes well for a healthier future for both our hardware and the games we create.” This success is attributed to the rise of PC and cloud gaming, along with the ongoing console business.
If an Xbox handheld does eventually come to fruition, it will need to stand out in a crowded market dominated by the likes of the Steam Deck and other Windows-based devices from Lenovo, MSI, and Asus. These next few years could be pivotal, and any later entrant will have to bring something truly groundbreaking to the table.
