Microsoft Executive Suggests Xbox Handheld Gaming Console Is Still Years Away

Phil Spencer, the head of gaming at Microsoft, has been quite open about his desire for an Xbox handheld device to challenge top contenders like the Steam Deck OLED and Asus ROG Ally X. However, in a recent conversation with Bloomberg, Spencer made it clear that we shouldn’t hold our breath for its arrival anytime soon.

During the interview, Spencer discussed the company’s plans, explaining they have the intention to develop something in this space, but it’s not going to hit the market for a few more years yet.

“Looking at the long term, I’m excited about the idea of us creating new devices,” Spencer mentioned to Bloomberg. “I believe our team can innovate significantly, but it’s important that we first understand and learn from current trends and developments.”

For the present moment, Microsoft appears to be prioritizing enhancing the Xbox app experience on existing PC gaming handhelds and fine-tuning Xbox features and game compatibility on those devices. A recent update to the Xbox app for Windows introduced a “compact mode” tailored to mobile devices. Reviewers, myself included, often cite Windows 11 as a pain point on handhelds like the ROG Ally and Lenovo Legion Go, and Microsoft seems to be addressing this.

The interview also touched on Microsoft’s continued interest in acquisitions, shortly after their monumental $69 billion acquisition of Activision Blizzard in 2023. Additionally, they are venturing into mobile game store development, although progress there has been slow.

Valve’s Steam Deck, which debuted in early 2022, was a game-changer for PC gaming handhelds. Although an OLED variant is now available, no new, more powerful chip has been introduced, and Valve has indicated that a major update is not on the horizon. Currently, many leading Windows handhelds rely on AMD’s Ryzen Z1 Extreme, keeping this segment largely in its infancy.

Despite Xbox’s position behind giants like the Nintendo Switch and PlayStation 5, Spencer assured Bloomberg that the division is thriving: “The business is thriving, and that bodes well for future hardware developments and the games we create.” This success is largely attributed to a boost in PC and cloud gaming alongside the traditional console market.

For an Xbox handheld to make waves, it would need to stand apart significantly from the Steam Deck and various Windows devices from brands like Lenovo, MSI, and Asus. So, while it might take a few years to materialize, its eventual debut will need to offer something genuinely groundbreaking to capture our attention.