Microsoft’s gaming chief, Phil Spencer, hasn’t exactly kept his desire for an Xbox handheld under wraps—one that could stand up to the likes of the Steam Deck OLED and Asus ROG Ally X, both considered top of the line amongst handheld gaming PCs. However, in a conversation with Bloomberg, Spencer was clear that any such device is not on the horizon for now.
Spencer shared with Bloomberg that while the idea is definitely on the table, fans shouldn’t hold their breath for its arrival; we’re looking at a few years down the line.
“I’m a huge fan of us crafting new devices,” Spencer mentioned to Bloomberg. “I think our team has the potential to be truly innovative, but we’re taking the time to learn from current trends before making our move.”
For now, it looks like Microsoft’s energy is directed towards enhancing the Xbox app experience on current PC gaming handhelds. They’re paying close attention to how Xbox features and games perform on those platforms. Just recently, Microsoft rolled out an update for the Xbox app on Windows—a “compact mode” tailored for mobile devices. Windows 11, on devices like the ROG Ally and Lenovo Legion Go, has often been criticized by reviewers (myself included) as not quite hitting the mark for handhelds.
In the same interview, Spencer divulged that Microsoft remains keen on further acquisitions, even after its whopping $69 billion buyout of Activision Blizzard in 2023. On the side, they’re also dabbling in mobile game stores, although that’s facing some pushbacks too.
Since its launch in early 2022, the Steam Deck has sparked interest in modern PC gaming handhelds. While it’s received an OLED display upgrade, it hasn’t yet seen a new chip to boost gaming performance, and no immediate refresh seems to be in Valve’s plans. Most popular Windows models opt for AMD’s Ryzen Z1 Extreme, suggesting that the PC gaming handheld market is still in its first wave.
Meanwhile, Spencer reassured Bloomberg that the Xbox division is thriving, even if it trails behind the Nintendo Switch and PlayStation 5: “The business is performing right now,” he asserted, underscoring the belief in a promising future for Xbox hardware and games. This success is bolstered by a rise in both PC and cloud gaming along with their existing console user base.
If Xbox ventures into the handheld market, it needs to bring something fresh and distinct to the table, setting itself apart from devices like the Steam Deck and those by Lenovo, MSI, and Asus. With exciting developments on the horizon over the next few years, a late arrival will have to make a significant splash to catch the gaming community’s eye.