Microsoft’s gaming division, led by Phil Spencer, has shown a significant interest in developing a handheld Xbox device to rival top competitors like the Steam Deck OLED and Asus ROG Ally X. However, in a recent discussion with Bloomberg, Spencer indicated that such a device is still far off on the horizon.
During their chat, Spencer acknowledged a desire to eventually produce a handheld, yet advised fans that they shouldn’t hold their breath waiting for it to drop in the immediate future.
“I’m enthusiastic about our potential to create innovative devices,” Spencer shared with Bloomberg, emphasizing that their process involves learning from current market trends and developments.
For now, Microsoft is concentrating its efforts on enhancing the Xbox app’s functionality on existing handheld PC gaming devices. A recent announcement highlighted a UI update for the Xbox app on Windows called “compact mode,” designed for mobile accessibility. This comes amidst some criticism regarding Windows 11’s performance on devices like the ROG Ally and Lenovo Legion Go.
The interview also shed light on Microsoft’s continued interest in expanding its portfolio through further acquisitions, like their massive $69 billion purchase of Activision Blizzard in 2023. Furthermore, the company is venturing into mobile game stores, although progress there has been slower than anticipated.
Since its debut in early 2022, the Steam Deck has set a high bar for modern PC gaming handhelds. While its OLED version received upgrades in screen technology, other core components like the in-chip gaming capabilities have stayed relatively unchanged. With the current landscape dominated by devices running on AMD’s Ryzen Z1 Extreme, the industry still largely feels like it’s in its infancy.
Meanwhile, Spencer reassured Bloomberg that the Xbox sector is thriving, even as it trails behind the Nintendo Switch and PlayStation 5. “Our business is strong right now, pointing to a promising future for both our hardware and the games we create,” he noted, citing growth in PC and cloud gaming as complementing their console sales.
For an Xbox handheld to truly leave a mark, it will need to offer something distinctive compared to the Steam Deck and the arsenal of Windows-based handhelds from brands like Lenovo, MSI, and Asus. Although its release might be some years away, there’s potential for this device to bring innovative surprises when it finally arrives.