Microsoft still has plans for an Xbox-branded handheld. But players aren’t likely to see the device hit store shelves just yet, according to the gaming company’s top executive.
Phil Spencer, the CEO of Microsoft Gaming and self-declared lover of portable gaming devices, confirmed again to Bloomberg that the company fully intends to put the brand in gamers’ hands in one way or another. The comment was made during an interview about the future of the Xbox business.
Spencer told Bloomberg that the company is currently working on prototypes and viable strategies to help ensure its success. Whatever comes of this development stage is a few years out, according to Spencer.
This is the second time this year that Spencer peeled back the curtain on Xbox’s plans for a portable device. Back in June, Spencer first alluded to those plans, telling IGN, “We should have a handheld too.”
“I’ll put it this way: I like my ROG Ally, my Lenovo Legion Go — fantastic — my Steam Deck,” Spencer said. “I think being able to play games locally is really important.”
The prospect of an Xbox handheld does make a lot of sense. Over the last couple of years, Microsoft has refocused the brand as a service accessible on all devices instead of a traditional gaming hardware maker. While Xbox hardware sales have been on the decline, Microsoft has already found great success in offering people an affordable way into its new ecosystem.
The novelty of a handheld with access to the Xbox Game Pass library and cloud streaming out of the box is a compelling device, especially in the age of Nintendo Switch and portable PCs.
But as much as companies like ASUS and Valve have proved there’s a growing audience for these suped-up handhelds, their success also means fierce competition. Valve has already confirmed that a proper second-generation Steam Deck is in the works. Meanwhile, ASUS has taken the Apple approach of releasing incremental updates to the ROG Ally’s hardware every few months.
With others having a head start on the market, Xbox will need to leverage everything it can to bully its way into the landscape. That’s before considering the impact Nintendo’s Switch 2 might have on all of these devices.
For the immediate future, however, Xbox is focused on making sure its services work well with devices gamers already own. The company is still working on launching the App Store that Xbox President Sarah Bond announced earlier this year. It is also working on making the Xbox App work well on all smartphones and ensuring they’re compatible with their Xbox devices.
“Longer term, I love us building devices,” Spencer said. “And I think our team could do some real innovative work, but we want to be informed by learning and what’s happening now.”
Outside of the mobile market, Spencer expressed his hopes to see Microsoft make strides with Asia’s growing gaming audience. The executive also called 2024 a tough year for the company, which laid off 2,500 workers in the last 11 months. But Xbox’s business is stabilizing going into the new year.
“The Xbox business has never been more healthy,” he said. “The business is performing right now, and that means a more healthy future for hardware and the games we build.”
