Reports indicate that Microsoft has officially canceled its plans for an Xbox-branded handheld gaming console, which had been anticipated to launch in the next couple of years. This decision follows closely after Asus introduced its ROG Xbox Ally, a new entrant in the handheld gaming market, suggesting that Microsoft will not be entering this competitive space with its own device, which was expected to rival the forthcoming Nintendo Switch 2.
Focus on Collaborations with Third-Party Developers
Technology News recently reported, citing sources familiar with the matter, that Microsoft has “essentially cancelled” the development of its handheld gaming device. Instead of pursuing its own compact console, the tech giant plans to enhance its Xbox software platform, which was previously showcased on the Asus ROG Xbox Ally and ROG Xbox Ally X.
Phil Spencer, CEO of Microsoft Gaming, confirmed that the company will shift its focus towards collaborating with third-party original equipment manufacturers (OEMs) interested in creating their own handheld gaming devices that utilize Windows. Spencer stated, “This is the tightest collaboration I’ve seen between the gaming organization and the Windows team in my three decades at the company,” during a recent podcast dedicated to Xbox topics.
The new portable consoles from Asus will operate on Windows, although customers will not interact with the standard Windows interface. Instead, these devices will feature an Xbox-themed user interface that will facilitate game and app launches via a streamlined, console-like launcher, similar to SteamOS. This method is expected to alleviate some of the potential issues users might encounter when navigating Windows on smaller screens.
This news follows earlier revelations from Windows Central, which indicated that Microsoft had already paused the development of its handheld console, directing its resources toward optimizing gaming performance in Windows 11. Enhanced performance is aimed at ensuring better functionality on handheld devices.
Furthermore, Microsoft has rebranded new PC games, previously labeled as Windows compatible, to “Xbox PC” titles. The Xbox PC application will now support Steam games as well as those specifically designed for Xbox PCs that can run on handheld systems. However, it appears significant challenges remain before Xbox titles can be effectively played on an Xbox PC using emulation.
