Phil Spencer, the head of Microsoft Gaming, has never shied away from expressing his enthusiasm for an Xbox handheld device to rival popular options like the Steam Deck OLED and the Asus ROG Ally X. However, during an interview with Bloomberg, Spencer clarified that we’re not going to see such a device in the immediate future.
Spencer mentioned that while there’s an “expectation” for Microsoft to venture into this space, we shouldn’t hold our breath waiting to see it materialize soon. “In the long run, I’m thrilled by the idea of us developing new devices,” he shared with Bloomberg. “I believe our team could innovate significantly, but our approach needs to be guided by learning and current trends,” he added.
For now, Microsoft is more focused on enhancing the user experience of the Xbox app on existing handheld gaming PCs. They’re particularly looking at how Xbox games and features perform on these gadgets. Recently, they rolled out a UI update for the Xbox app on Windows, introducing a “compact mode” designed for mobile use. Most reviews, including my own, have consistently highlighted Windows 11’s limitations on handhelds like the ROG Ally and Lenovo Legion Go.
Additionally, the interview shed light on Microsoft’s continued interest in acquisitions, especially following its massive $69 billion buyout of Activision Blizzard in 2023. They’re also working on mobile game stores, although these have encountered delays.
The Steam Deck, which debuted in early 2022, was a pioneer in bringing modern PC gaming to handhelds. While it did receive an OLED refresh, it doesn’t yet have a new chip to enhance gaming performance, and Valve seems in no rush to release a major update. Meanwhile, most leading Windows handhelds run on AMD’s Ryzen Z1 Extreme, indicating that the sector is still in its nascent stages.
Spencer also told Bloomberg that Xbox is faring well despite being third in line after the Nintendo Switch and PlayStation 5. He noted, “The business is performing well at the moment, suggesting a more robust future for both our hardware and game development.” This growth stems from an upswing in PC and cloud gaming alongside their existing console operations.
If an Xbox handheld is to truly capture attention, it will need to stand out significantly from the likes of the Steam Deck and devices from Lenovo, MSI, and Asus. Those coming years promise to be dynamic for the industry, so any latecomers will need to make a big, bold splash.
