Phil Spencer, the head of gaming at Microsoft, has openly expressed his enthusiasm for an Xbox handheld device that could rival top-notch handheld gaming PCs such as the Steam Deck OLED and Asus ROG Ally X. However, during a chat with Bloomberg, he made it clear that such a device isn’t on the horizon just yet.
In the conversation, Spencer conveyed that while there’s an “expectation” for Microsoft to venture into this space, it won’t materialize for some time. “In the long run, I’m thrilled at the idea of us creating devices,” Spencer shared with Bloomberg. “I believe our team is capable of groundbreaking innovations, but we want to learn from the current market dynamics first.”
For now, Microsoft’s primary focus lies in enhancing the Xbox app’s user experience on existing PC gaming handhelds and refining how Xbox games and features perform on these devices. Microsoft’s recent announcement of a “compact mode” update for the Xbox app on Windows, designed for mobile platforms, underscores this. Windows 11 has been highlighted by many reviewers, myself included, as a less-than-ideal fit for handhelds like the ROG Ally and Lenovo Legion Go.
The interview also touched on Microsoft’s continued interest in acquisitions, following their massive $69 billion acquisition of Activision Blizzard in 2023. Moreover, the company is also working on mobile game stores, although those plans have hit some delays.
Since its launch in early 2022, the Steam Deck has set a trend for modern PC gaming handhelds. Although it received an OLED upgrade, it hasn’t yet incorporated a new, more powerful chip. Valve has hinted at not rushing to release an update. The majority of popular Windows handhelds are powered by AMD’s Ryzen Z1 Extreme, which suggests that we’re still in the early phase of this segment.
In the meantime, Spencer shared with Bloomberg that Microsoft’s Xbox division is thriving, even as it trails behind heavyweights like the Nintendo Switch and PlayStation 5. “The business is performing well right now, and I think that spells a promising future for our hardware and the games we develop,” Spencer stated. This success is fueled by growth in PC and cloud gaming alongside their traditional console operations.
Should an Xbox handheld eventually enter the fray, it will need to stand out significantly from competitors like the Steam Deck and devices from Lenovo, MSI, and Asus. The coming years hold exciting possibilities, and any latecomer will need to bring something truly groundbreaking to the table.
