Microsoft Executive Indicates Xbox Gaming Handheld Won’t Arrive for Several Years

Phil Spencer, the head of Microsoft’s gaming division, hasn’t hidden his enthusiasm for an Xbox handheld designed to rival top-tier devices like the Steam Deck OLED and the Asus ROG Ally X. However, during a conversation with Bloomberg, he clearly indicated that this device is not on the immediate horizon.

In his discussion with Bloomberg, Spencer mentioned that while there is an expectation for Microsoft to eventually develop such a device, it’s going to be a while before we see anything tangible. “In the long run, I’m eager for us to create our own hardware,” Spencer explained. “I believe our team has the potential to innovate significantly, but we want to be informed by current trends and learn as we progress.”

For now, Microsoft’s attention seems to be on enhancing the Xbox app experience on the existing crop of PC gaming handhelds and ensuring Xbox features and games perform well on these platforms. Recently, the company rolled out a UI update dubbed “compact mode” for the Xbox app on Windows, tailored for mobile devices. It’s worth noting that Windows 11 has frequently been criticized by reviewers, myself included, for its shortcomings on handheld devices like the ROG Ally and Lenovo Legion Go.

The interview also shed light on Microsoft’s ongoing interest in acquiring more companies, following its massive $69 billion acquisition of Activision Blizzard earlier this year. Additionally, the company is working on mobile game stores, although these have encountered some delays.

The Steam Deck, which hit the market in early 2022, really set the stage for modern PC gaming handhelds. Despite receiving an OLED update, it hasn’t yet been equipped with a new chip to boost gaming performance, and Valve has hinted that there won’t be an update anytime soon. Most popular Windows handhelds currently operate on AMD’s Ryzen Z1 Extreme, so many still view the PC gaming handheld sector as being in its initial phase.

Meanwhile, Spencer told Bloomberg that the Xbox business is thriving, even if it ranks third behind the Nintendo Switch and PlayStation 5. “The business is doing well, and that’s a good sign for the future of our hardware and games,” he said. This is largely due to a rise in PC and cloud gaming, on top of the existing console market.

If and when an Xbox handheld does make its debut, it will need to stand out significantly from the Steam Deck and other Windows-based devices from Lenovo, MSI, and Asus. The next few years promise to be thrilling in the gaming sphere, so any latecomer into the handheld market will need to offer something truly remarkable.