Microsoft Executive Indicates Xbox Handheld Gaming Device Still Several Years from Release

Phil Spencer, the head of Microsoft Gaming, has always shown a keen interest in an Xbox handheld device that could rival top-tier handheld gaming PCs like the Steam Deck OLED and the Asus ROG Ally X. However, during a recent chat with Bloomberg, Spencer was candid about the timeline for such a device, implying that it won’t be hitting the shelves anytime soon.

In the discussion, Spencer mentioned that while there’s an anticipation for Microsoft to eventually produce something innovative, the public should not hold their breath for seeing it within the next few years.

“I’m a big fan of us getting into creating devices ourselves,” Spencer shared with Bloomberg. “Our team has the potential to do some groundbreaking work, but we want to ensure we’re learning from the current trends and developments.”

For now, Microsoft seems to be channeling its efforts into enhancing the user experience of its Xbox app across the existing range of PC gaming handhelds. They are working on optimizing how Xbox features and games perform on these gadgets. Recently, they’ve introduced a new UI update for the Xbox app on Windows, dubbed “compact mode” for mobile gadgets. Windows 11 has been a sore spot in reviews—mine included—particularly on devices like the ROG Ally and the Lenovo Legion Go.

The conversation also touched on Microsoft’s continued interest in further expanding its portfolio following its massive $69 billion acquisition of Activision Blizzard in 2023. Additionally, Microsoft has yet to launch its anticipated mobile games stores, which are currently delayed.

Since its release in early 2022, the Steam Deck has significantly boosted the popularity of handheld PC gaming. Although it received an OLED update, there’s been no introduction of a new chip offering enhanced gaming power, and Valve has indicated that an update won’t be coming soon. As it stands, most sought-after Windows handhelds feature AMD’s Ryzen Z1 Extreme, reflecting that the sector is still in its initial stages.

Meanwhile, despite Xbox’s third-place position behind the Nintendo Switch and PlayStation 5, Spencer conveyed to Bloomberg that the Xbox division is thriving: “We’re currently performing well, which bodes well for future hardware and game development.” This success is largely due to an uptick in PC and cloud gaming alongside the standard console business.

For an Xbox handheld to make a significant impact, it needs to stand out from the Steam Deck and the array of Windows devices from brands like Lenovo, MSI, and Asus. The coming years could be thrilling in this space, so if Xbox enters late, it will need to come with something truly groundbreaking.