Phil Spencer, the head of Microsoft’s gaming division, has never been shy about expressing his interest in developing an Xbox handheld to rival top-tier devices like the Steam Deck OLED and the Asus ROG Ally X. However, during a recent conversation with Bloomberg, Spencer made it clear that gamers shouldn’t expect to see this device hit the shelves any time soon.
“We definitely have some big aspirations,” Spencer remarked in the interview. He hinted at potential plans by saying, “The expectation is that we would do something” but warned that it won’t happen for a few years.
He continued, “In the long run, I’m a fan of us creating hardware. I believe our team can bring some ground-breaking innovations to the table, but right now, we’re keen on absorbing knowledge and understanding the current landscape.”
For the time being, Microsoft seems more focused on enhancing their Xbox app experience across current PC gaming handhelds. This includes refining how Xbox games and features perform on these devices. Notably, Microsoft recently unveiled a “compact mode” UI update for their Windows Xbox app, specifically designed for mobile devices. It’s worth mentioning that Windows 11 has received mixed reviews, often being criticized as a weakness on handhelds like the ROG Ally and Lenovo Legion Go.
Furthermore, the interview highlighted Microsoft’s ongoing interest in expanding through acquisitions, even after their massive $69 billion purchase of Activision Blizzard in 2023. They’re also exploring mobile game stores, though progress has been slower than anticipated.
The Steam Deck revolutionized the handheld gaming PC market when it launched in early 2022. Although it received an OLED upgrade, there’s been no new hardware to boost its gaming power, and Valve has not announced any upcoming updates. Currently, most popular Windows handhelds run on AMD’s Ryzen Z1 Extreme, which suggests that the handheld gaming market is still maturing.
Despite being third in line behind the Nintendo Switch and PlayStation 5, Spencer emphasized to Bloomberg that the Xbox division is thriving: “The business is performing right now, and I think that means a more healthy future for hardware and the games we build.” This success is largely driven by the growing popularity of PC and cloud gaming, bolstering their existing console endeavors.
If and when an Xbox handheld enters the fray, it will need to stand out significantly from the Steam Deck and other Windows devices from brands like Lenovo, MSI, and Asus. The path forward may be long, but it promises to hold some thrilling developments. A late entry from Xbox would need to offer something truly spectacular to capture the gaming community’s attention.
