Phil Spencer, the head of gaming at Microsoft, has been open about his interest in developing an Xbox handheld device to rival some of the top contenders in the market like the Steam Deck OLED and Asus ROG Ally X. However, as he discussed in a recent chat with Bloomberg, Microsoft’s foray into handheld gaming isn’t on the immediate horizon.
Spencer explained in the interview that while there’s an expectation for an Xbox handheld, we shouldn’t hold our breath for it to appear anytime soon. He elaborated, saying, “In the long run, I really want us to be creating devices. I think our team could come up with some truly innovative things, but we need to learn and evolve based on what’s happening right now.”
Currently, Microsoft is placing its energy into enhancing its Xbox app on the existing range of handheld PC gaming devices, making sure that Xbox features and games run smoothly on them. Just recently, they rolled out an updated “compact mode” for the Xbox app on Windows, aimed at improving its use on mobile devices. Many reviewers, myself included, have highlighted Windows 11 as lacking in handheld devices like the ROG Ally and Lenovo Legion Go.
The interview also shed light on Microsoft’s continued interest in acquiring other companies, following its massive $69 billion acquisition of Activision Blizzard in 2023. Additionally, Microsoft is actively developing mobile gaming stores, although these projects have been delayed.
Since the release of the Steam Deck in early 2022, which became quite popular in revitalizing PC gaming handhelds, there hasn’t been a major update to its core specifications, such as a new processor. Most modern Windows-based handhelds currently rely on AMD’s Ryzen Z1 Extreme, keeping this segment of the market in its nascent stages.
Meanwhile, Spencer reassured Bloomberg that the Xbox division is thriving, albeit holding the third spot behind the Nintendo Switch and PlayStation 5. He noted, “The business is doing well, and I believe that means a healthier future for both our hardware and the games we create.” This success is largely due to growth in PC and cloud gaming, complementing the traditional console business.
For Microsoft to successfully dive into the handheld market, its Xbox device would need to stand out distinctly from the existing Steam Deck and Windows devices by brands like Lenovo, MSI, and Asus. Although a release is still a few years away, the industry is likely to witness some thrilling advancements, so any latecomer will need to make a significant impact to capture attention.
