Phil Spencer, the head honcho at Microsoft Gaming, has openly expressed his enthusiasm for crafting an Xbox handheld device to rival top contenders like the Steam Deck OLED and the Asus ROG Ally X in the handheld gaming PC arena. Yet, during a recent chat with Bloomberg, he hinted that such a gadget isn’t on the immediate horizon.
Spencer shared with Bloomberg that while there’s an expectation for Microsoft to eventually roll out something new, it won’t be hitting the shelves for a few years at least. “In the long run, I’m all for us crafting our own devices,” Spencer noted. “I believe our team has the potential to innovate remarkably, but we need to learn and observe current trends first.”
For now, their attention seems to be on enhancing the Xbox app experience across existing PC gaming handhelds. They’re focusing on optimizing how Xbox features and games perform on these devices. Not too long ago, Microsoft unveiled a user interface refresh for the Xbox app on Windows, introducing a “compact mode” tailored for mobile devices. Reviewers, myself included, have often pointed out that Windows 11 represents a bit of a soft spot when it comes to handhelds such as the ROG Ally and Lenovo Legion Go.
The interview also shed light on Microsoft’s ongoing interest in acquisitions even after its whopping $69 billion purchase of Activision Blizzard in 2023. Plus, they’re dabbling in mobile gaming stores, although those have hit some delays.
The handheld gaming scene got a major boost when the Steam Deck launched in early 2022. Despite its OLED update, it hasn’t yet received a new chip with enhanced gaming capabilities, and Valve seems in no rush to launch an upgrade. Most favored Windows handhelds are equipped with AMD’s Ryzen Z1 Extreme, indicating that the PC gaming handheld sector is still somewhat in its infancy.
In the meantime, Spencer expressed to Bloomberg that the Xbox division is thriving despite being in third place behind Nintendo Switch and PlayStation 5. “The business is strong right now, which bodes well for the future of our hardware and the games we create,” he mentioned. This is largely due to the growing popularity of PC and cloud gaming, adding to the existing console market’s momentum.
If Microsoft eventually rolls out an Xbox handheld, it’s going to need to stand out significantly from the likes of the Steam Deck and devices from Lenovo, MSI, and Asus. The next few years in this space promise to be intensely competitive, and any latecomer will need to bring something truly groundbreaking to the table.
