Phil Spencer, the head of Microsoft’s gaming division, has openly expressed his curiosity about an Xbox handheld device that could go head-to-head with top contenders like the Steam Deck OLED and the Asus ROG Ally X. However, in a recent conversation with Bloomberg, Spencer emphasized that such a device won’t be hitting the shelves anytime soon.
During his chat with Bloomberg, Spencer mentioned that while there are plans to eventually develop something, fans shouldn’t hold their breath for its arrival in the near future. “In the long run, I’m enthusiastic about creating devices,” Spencer commented. He believes Microsoft’s team is capable of groundbreaking work but stresses the importance of learning from the current market trends before diving in.
For now, the focus is squarely on enhancing the Xbox app’s functionality on existing PC gaming handhelds, ensuring Xbox games and features run seamlessly on these platforms. Microsoft recently unveiled a new UI update for the Xbox app on Windows, dubbed “compact mode” for mobile devices. Many reviews, mine included, often cite Windows 11 as a pain point for handhelds like the ROG Ally and Lenovo Legion Go.
The interview also shed light on Microsoft’s appetite for further acquisitions, following their massive $69 billion takeover of Activision Blizzard in 2023. The company is also knee-deep in developing mobile game stores, although there have been some delays in that area.
Introduced in early 2022, the Steam Deck made waves in the modern PC gaming handheld market. It recently got an OLED upgrade, but a more powerful chip update is yet to be seen, with Valve not rushing into launching a new version. Many of the sought-after Windows-based handhelds are powered by AMD’s Ryzen Z1 Extreme, indicating that we’re still in the initial phase of the PC gaming handheld revolution.
Despite trailing behind the Nintendo Switch and PlayStation 5, Spencer shared with Bloomberg that Xbox is thriving. “Our business is doing well, which bodes well for the future of our hardware and games,” he stated. This success largely stems from a surge in PC and cloud gaming complementing the established console market.
If Microsoft does decide to introduce an Xbox handheld, it will need to offer something distinct to stand out from the Steam Deck and other devices from brands like Lenovo, MSI, and Asus. The next few years are bound to bring exciting advancements, so any future Xbox entry will need to pack a punch to capture attention.
