Phil Spencer, the head of Microsoft’s gaming division, has been open about his interest in developing an Xbox handheld to rival top-notch devices like the Steam Deck OLED and Asus ROG Ally X. However, during a recent chat with Bloomberg, Spencer clarified that we shouldn’t hold our breath for this device—it’s still a few years away.
In the interview, Spencer admitted, “We’ve got plans, but don’t expect anything soon.” He expressed enthusiasm for making devices in the long run, stating, “I’m excited about us creating hardware. Our team has the potential to innovate, but we want to learn from what’s happening right now.”
For the moment, Microsoft appears focused on enhancing the Xbox app experience for existing PC gaming handhelds while optimizing Xbox features and games for these devices. Not too long ago, a new “compact mode” was announced for the Xbox app on Windows, aiming to cater to mobile devices. Reviewers, myself included, often critique Windows 11 as being less than ideal for handhelds like the ROG Ally and Lenovo Legion Go.
The interview also highlighted Microsoft’s intention to continue expanding its portfolio, even after its massive $69 billion acquisition of Activision Blizzard in 2023. Additionally, Microsoft is exploring mobile game stores, although those efforts have hit some delays.
Introduced in early 2022, the Steam Deck brought modern PC gaming handhelds into the limelight. While it received an OLED update, it hasn’t yet seen a more powerful chip, and Valve has hinted that a focus on updating is not immediate. Most Windows-based handhelds are currently running on AMD’s Ryzen Z1 Extreme, marking this as the first generation for PC gaming handhelds.
Spencer also shared that the Xbox business is thriving despite trailing behind the Nintendo Switch and PlayStation 5. He commented, “Our business is strong right now, which bodes well for future hardware and games development.” This success stems from growth in PC and cloud gaming, supplementing the traditional console market.
For an Xbox handheld to make an impact, it will need to stand out significantly from devices like the Steam Deck and those from Lenovo, MSI, and Asus. While the intervening years might bring many thrilling developments, a later release from Microsoft will have to offer something genuinely groundbreaking to capture attention.
