Microsoft Exec Indicates Xbox Gaming Handheld Still Years from Launch

Phil Spencer, the head of gaming at Microsoft, has been open about his curiosity for an Xbox handheld device that could rival top-tier portable gaming PCs like the Steam Deck OLED and the Asus ROG Ally X. However, in a recent chat with Bloomberg, Spencer indicated that such a device won’t be hitting the shelves any time soon.

During the interview, Spencer mentioned that while there is a general “expectation” for Microsoft to create something innovative, fans shouldn’t hold their breath for its arrival soon. “In the long run, I love the idea of us crafting new devices,” Spencer shared with Bloomberg. He emphasized that any future projects would be guided by current insights and developments within the industry.

As of now, Microsoft appears to be concentrating on enhancing the user experience of its Xbox app for the existing range of PC gaming handhelds, as well as optimizing Xbox features and games on those devices. Microsoft recently disclosed a user interface update for the Xbox app on Windows, dubbed “compact mode,” designed specifically for mobile devices. Many reviewers, myself included, have noted that Windows 11 still struggles on handhelds such as the ROG Ally and Lenovo Legion Go.

The discussion also touched on Microsoft’s ongoing interest in further expanding its portfolio after its massive $69 billion acquisition of Activision Blizzard in 2023. Additionally, Microsoft is venturing into mobile gaming stores, though this initiative has seen some delays.

Launched in early 2022, the Steam Deck set a new standard for portable PC gaming. Despite receiving an OLED upgrade, it hasn’t introduced a chip with more powerful gaming capabilities, and Valve has hinted at no imminent updates. The majority of popular Windows handhelds are powered by AMD’s Ryzen Z1 Extreme, so it’s generally accepted that we are still in the inaugural phase for PC gaming handhelds.

In the meantime, Spencer shared with Bloomberg that Xbox is performing commendably, holding its own despite being third in line behind the Nintendo Switch and PlayStation 5. “The business is thriving right now,” he stated, “which bodes well for both future hardware and the games we’re developing.” This success is bolstered by growing trends in PC and cloud gaming alongside their console business.

For an Xbox handheld to stand out, it needs to carve a distinctive niche compared to competitors like the Steam Deck and Windows-based devices from Lenovo, MSI, and Asus. The next few years could bring thrilling developments to the handheld gaming arena, making a latecomer Xbox device need something truly groundbreaking to make waves.