Phil Spencer, who leads Microsoft’s gaming division, has been quite open about his curiosity regarding an Xbox handheld device to rival top-tier handheld gaming PCs like the Steam Deck OLED and Asus ROG Ally X. However, during a conversation with Bloomberg, Spencer emphasized that such a device isn’t on the horizon for the immediate future.
Spencer explained in the interview that while there’s an “expectation” for Microsoft to eventually launch this kind of device, fans shouldn’t anticipate its arrival anytime within the next few years.
“I’m passionate about us developing hardware,” Spencer shared with Bloomberg. “I truly believe our team could create something groundbreaking. But right now, we want our efforts to be guided by learning and the current landscape.”
At present, it seems Microsoft is concentrating on enhancing the functionality of its Xbox app for existing PC gaming handhelds and ensuring Xbox features and games integrate well with those systems. Microsoft recently upgraded its Xbox app for Windows with a “compact mode” designed for mobile devices. Many reviewers, myself included, have pointed out that Windows 11 can be a bit of a drawback on handhelds like the ROG Ally and Lenovo Legion Go.
The interview also highlighted that Microsoft is still pursuing further acquisitions, even after its massive $69 billion acquisition of Activision Blizzard in 2023. Additionally, Microsoft has plans to develop mobile game stores, although those have been postponed.
The Steam Deck, which debuted in early 2022, has made waves in the modern PC gaming handheld market. Although it received an OLED update, it hasn’t yet been upgraded with a more powerful chip, and Valve has implied that a new release isn’t forthcoming. Currently, the majority of popular Windows alternatives utilize AMD’s Ryzen Z1 Extreme, indicating that the PC gaming handheld market is still in its infancy.
Meanwhile, Spencer assured Bloomberg that the Xbox division is performing well despite being in third place behind the Nintendo Switch and PlayStation 5. He noted, “The business is thriving, pointing towards a more vibrant future for our hardware and game development.” This positive outlook is largely attributed to the growth of both PC and cloud gaming, alongside traditional console sales.
For an Xbox handheld to create a buzz, it’ll need to significantly stand apart from competitors like the Steam Deck and Windows devices from Lenovo, MSI, and Asus. The forthcoming years could be thrilling for this market segment, and any latecomer will need to deliver something truly spectacular to capture attention.
