Phil Spencer, the head of gaming at Microsoft, has never been shy about his interest in developing an Xbox handheld device to rival top contenders like the Steam Deck OLED and the Asus ROG Ally X in the handheld gaming PC market. However, during a recent chat with Bloomberg, he was clear that such a device is still far off on the horizon.
In his conversation with Bloomberg, Spencer mentioned that while there is an “expectation” to eventually create something in this space, fans shouldn’t hold their breath for it to appear anytime soon.
“Down the line, I’d love for us to develop new devices,” Spencer mentioned. “I believe our team has some innovative ideas up their sleeve, but we need to learn and let current trends guide us first.”
For the immediate future, Microsoft is focusing on enhancing the Xbox app experience for the existing lineup of PC gaming handhelds. They’re aiming to fine-tune Xbox features and games for these devices. Recently, Microsoft rolled out a “compact mode” update for the Xbox app on Windows, specifically designed for mobile devices. Windows 11, many reviewers (myself included) have noted, tends to struggle on handhelds like the ROG Ally and Lenovo Legion Go.
The interview highlighted that Microsoft remains keen on acquiring more companies even after its massive $69 billion purchase of Activision Blizzard in 2023. They’re also working on mobile games stores, though progress there has been slow.
The launch of the Steam Deck in early 2022 shifted the landscape for modern PC gaming handhelds. While it did receive an OLED upgrade, a more powerful chip update isn’t on the cards anytime soon, according to Valve. Most preferred Windows options in this field rely on AMD’s Ryzen Z1 Extreme, meaning the PC gaming handheld market is still in its initial stages.
Meanwhile, Spencer shared with Bloomberg that the Xbox division is thriving, despite lagging behind Nintendo Switch and PlayStation 5 in sales. “The business is holding strong, which bodes well for the future of our hardware and the games we produce,” he remarked. This growth is largely credited to rising PC and cloud gaming revenues alongside its traditional console business.
For an Xbox handheld to truly make waves, it will need to stand out significantly from competitors like the Steam Deck and devices from manufacturers such as Lenovo, MSI, and Asus. The coming years promise to be exciting, so any latecomer to the fray better bring something extraordinary to the table.
