Microsoft’s gaming chief, Phil Spencer, hasn’t shied away from talking about the possibility of an Xbox handheld device that could potentially rival powerhouse gaming PCs like the Steam Deck OLED and Asus ROG Ally X. Nevertheless, during a conversation with Bloomberg, he made it clear that we shouldn’t hold our breath, as this device isn’t on the immediate horizon.
In the chat, Spencer mentioned the anticipation of eventually developing such a device, but emphasized that the public shouldn’t expect it any time soon, hinting it might be a matter of years before we see anything concrete.
“For the long haul, I’m excited about creating new devices,” Spencer shared with Bloomberg. “Our team is capable of remarkable innovation, but we want our efforts to be informed and shaped by current trends and learnings.”
For now, though, Microsoft seems to be concentrating on enhancing the Xbox app experience on existing PC gaming handhelds, optimizing Xbox features and games to perform seamlessly on those devices. Notably, Microsoft recently introduced a UI update for the Xbox app on Windows, known as “compact mode,” designed with mobile devices in mind. Many reviewers (myself included) have pointed out that Windows 11 can be a bit of a stumbling block on handhelds like the ROG Ally and Lenovo Legion Go.
The discussion also revealed Microsoft’s ongoing interest in acquisitions, following its massive $69 billion takeover of Activision Blizzard in 2023. Additionally, Microsoft’s efforts in mobile gaming stores are still on the agenda, albeit with some delays.
The launch of the Steam Deck in early 2022 marked a turning point for modern PC gaming handhelds. While it did receive an OLED update, an upgrade to a more powerful chip hasn’t happened yet, and Valve’s hinted there’s no immediate rush for a refresh. Most of the popular Windows options rely on AMD’s Ryzen Z1 Extreme processor, a sign that the PC gaming handheld market is still in its infancy.
Spencer also conveyed to Bloomberg that the Xbox enterprise is thriving despite ranking third behind the Nintendo Switch and PlayStation 5. “The business is doing well, and that bodes well for the future of our hardware and game development,” he said, attributing this success to the growing popularity of PC and cloud gaming alongside their traditional console offerings.
For an Xbox handheld to make waves in the market, it needs to stand out significantly from the Steam Deck and other Windows machines by Lenovo, MSI, and Asus. The upcoming years could bring exciting developments, so any latecomer will need to offer something genuinely groundbreaking.
