Phil Spencer, the head of Microsoft’s gaming division, has always been open about his desire for an Xbox handheld device that could rival leading handheld gaming PCs like the Steam Deck OLED and Asus ROG Ally X. However, in a recent chat with Bloomberg, Spencer confirmed that we shouldn’t hold our breath for it just yet.
During the interview, Spencer highlighted that while there’s an “expectation” for Microsoft to develop something, it might take a few years before such a device becomes a reality. “In the long term, I would love for us to venture into creating handheld devices,” he expressed to Bloomberg. “I believe our team is capable of some groundbreaking innovation, but we need to learn from current trends and advancements before proceeding.”
At present, Microsoft’s efforts seem concentrated on enhancing the Xbox app experience on the existing range of PC gaming handhelds. This includes improving how Xbox games and features function on these devices. A noteworthy recent update is the introduction of a “compact mode” for the Xbox app on Windows, aimed at mobile devices. Critics—myself included—have pointed out that Windows 11 poses challenges on handheld devices like the ROG Ally and Lenovo Legion Go.
The conversation also uncovered Microsoft’s ongoing interest in expanding its acquisitions, following its monumental $69 billion acquisition of Activision Blizzard in 2023. Additionally, Microsoft continues its work on mobile game stores, although these projects have hit some delays.
Since its debut in early 2022, the Steam Deck has set the standard for modern PC gaming handhelds. While an OLED version has emerged, a more powerful chip is still not on the horizon, and Valve appears to be in no rush for a significant hardware update. Most popular Windows-based handhelds sport AMD’s Ryzen Z1 Extreme, reflecting that the market is still in its formative stages.
Despite Xbox’s current third-place position behind the Nintendo Switch and PlayStation 5, Spencer conveyed optimism in his conversation with Bloomberg. “The business is performing well, laying the foundation for a healthier future for our hardware and games portfolio,” he explained. This performance is buoyed by growth in both PC and cloud gaming in addition to the traditional console segment.
For an Xbox handheld to truly stand out, it would need to offer something remarkably unique compared to the Steam Deck and Windows-powered devices from brands like Lenovo, MSI, and Asus. With innovation constantly on the rise, these upcoming years promise to be thrilling, and any latecomer will need to bring some groundbreaking features to steal the spotlight.
