Microsoft’s plans for a first party Xbox handheld device have been put on the backburner according to reports, as it changes focus to Windows 11.
For years now, Microsoft has been very open about its intentions to jump into the handheld gaming space.
The company has seemingly been working on two separate handheld devices: a first party portable tied to the next gen Xbox console and a third party collaboration with Asus. Images of the latter, which is rumoured to launch this year, were leaked earlier this month.
According to the latest rumours though, the dedicated Xbox handheld, which Microsoft Gaming CEO Phil Spencer last year said was still ‘a few years out’, has been shelved for the time being, as the company shifts its priorities towards improving the gaming experience on existing devices.
According to Windows Central, Microsoft still wants to build its own Xbox handheld in the future, but it has opted to prioritise improving the gaming performance on Windows 11, including for the upcoming Asus handheld codenamed Project Kennan.
It’s claimed this decision was announced internally on Thursday, May 29, as Microsoft shifts ‘more deeply towards third party OEM (original equipment manufacturer) handhelds in the interim’.
This move might be related to the threat of Valve’s SteamOS which, based on recent previews, is said to run far better on existing gaming handhelds when compared to the Windows variant.
Microsoft hasn’t announced anything about its first party handheld plans, and it was unclear what kind of device it would actually be, but this delay suggests it will (if it eventually comes out) be closer to a native Xbox handheld rather than a Windows 11 device.
The big question is what Microsoft can offer in the handheld space that isn’t already being catered to. Nintendo has a significant head start with the Switch 2, and any attempt to outdo its power and performance might steer it towards a more expensive, niche product like the Steam Deck.
It’s possible Microsoft is hoping to offer an alternative when the shine of the Switch 2 has worn off, but with Sony also rumoured to be working on a handheld device, it might find itself facing another competitor if it waits too long.
Microsoft’s next gen console is expected to launch in 2027, and the company has previously described it as offering ‘the biggest technological leap ever in a generation’. There’s still no indication of what that means, but many suspect it involves AI.
Xbox’s plans for the immediate future are set to be revealed during an Xbox showcase on Sunday, June 8, led by The Outer Worlds 2.
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