Phil Spencer, the head of Microsoft Gaming, has been quite transparent about his interest in launching an Xbox handheld device that could rival top contenders like the Steam Deck OLED and Asus ROG Ally X. However, in a candid chat with Bloomberg, Spencer shared that such a device is not on the immediate horizon.
During the interview, Spencer stated that while there’s an “expectation” for Microsoft to venture into this space, we shouldn’t count on seeing it materialize for several more years. He mentioned, “In the long run, I’m eager for us to develop devices. I believe our team can do genuinely innovative work, but we want to be guided by current learnings and market trends.”
For now, it appears Microsoft’s priority is enhancing the Xbox app’s performance on existing PC gaming handhelds. The company is focusing on refining Xbox features and game compatibility on these devices. Recently, they rolled out a “compact mode” update for the Xbox app on Windows, aimed at improving mobile device functionality. Many reviewers, myself included, have noted that Windows 11 can be cumbersome on handheld devices like the ROG Ally and Lenovo Legion Go, so this update is a welcome improvement.
The conversation with Bloomberg also revealed Microsoft’s ongoing interests in expanding through acquisitions, even after their massive $69 billion acquisition of Activision Blizzard in 2023. Moreover, Microsoft is working on mobile game stores, although progress there has seen delays.
The Steam Deck, which debuted in early 2022, set the benchmark for modern handheld gaming PCs. While it received an OLED screen update, no new, more powerful chipset has been introduced yet, and Valve has indicated that a hardware refresh isn’t imminent. Currently, most handhelds run on AMD’s Ryzen Z1 Extreme, marking the sector as still relatively new.
Spencer also reassured Bloomberg that the Xbox business is thriving despite being third in line after the Nintendo Switch and PlayStation 5. He commented, “The business is performing well now, and I believe that bodes well for the future of our hardware and games development.” This success is largely attributed to the growth in PC and cloud gaming, complementing the existing console market.
When Microsoft does decide to release an Xbox handheld, it will need to distinguish itself significantly from the Steam Deck and other Windows devices by brands like Lenovo, MSI, and Asus. The coming years could be very promising, suggesting that if and when this device does arrive, it will need to offer something truly remarkable to stand out.
