Phil Spencer, the visionary leader of Microsoft’s gaming division, has expressed a keen interest in creating an Xbox handheld device, eyeing competition with popular handheld gaming PCs like the Steam Deck OLED and the Asus ROG Ally X. However, in a candid discussion with Bloomberg, Spencer set the record straight: such a device is not on the immediate horizon.
During the interview, Spencer remarked that while there’s an “expectation” of developing such a gadget, it’s something gamers shouldn’t anticipate for a few more years.
“In the long run, I’m thrilled about the idea of us crafting new devices,” Spencer shared with Bloomberg. “Our team has the potential to innovate significantly, but we need to be guided by current learnings and trends in the industry.”
For now, the emphasis seems to be on refining the Microsoft Xbox app experience on existing PC gaming handhelds, ensuring Xbox features and games function seamlessly on those platforms. Microsoft recently rolled out a UI upgrade for the Xbox app on Windows, dubbed “compact mode” for mobile devices. This update comes as Windows 11 continues to be critiqued by reviewers, myself included, for its performance on handheld devices like the ROG Ally and Lenovo Legion Go.
The interview also divulged that Microsoft remains open to further acquisitions, following its massive $69 billion deal to acquire Activision Blizzard in 2023. Meanwhile, the company is working on mobile game stores, though progress has been slower than anticipated.
Since its launch in early 2022, the Steam Deck has revolutionized the PC gaming handheld market. It has received an OLED upgrade but not yet a new, more powerful chip, with Valve indicating no forthcoming update soon. Most popular Windows handhelds now rely on AMD’s Ryzen Z1 Extreme, solidifying the notion that the PC gaming handheld market is still in its infancy.
Despite trailing behind industry giants like the Nintendo Switch and PlayStation 5, Spencer conveyed to Bloomberg that the Xbox business is thriving. “The business is performing right now, and I think that means a more healthy future for hardware and the games we build,” he noted, attributing success partly to the growing sectors of PC and cloud gaming alongside the traditional console market.
Should Xbox enter the handheld arena, it must carve out a unique identity, distinct from the Steam Deck and Windows-powered devices from brands like Lenovo, MSI, and Asus. The gaming world will likely see exciting developments in the coming years, so any latecomer will need to introduce something truly groundbreaking.
