Xbox Is Working On A Gaming Handheld But It's Still A Few Years Out

Rumors have been flying all year that Xbox is working on a PC gaming handheld. On Wednesday, Microsoft Gaming CEO Phil Spencer confirmed that plans are underway, though it sounds like an actual portable device is still a few years out.

Speaking to Bloomberg, the longtime Xbox executive addressed the ongoing speculation about whether Microsoft would hop into the current PC gaming handheld arms race. “[The] expectation is that we would do something [in that category],” he acknowledged. He told Bloomberg that the company is currently working on prototypes, but that a finished product isn’t close. It also sounds like these plans could be scrapped if market conditions change.

As the Switch console hybrid became Nintendo’s second best-selling gaming device ever, others in the space rushed to cater to the growing market for high-end gaming portables. Valve has released its Steam Deck, Asus shipped its ROG Ally which partners closely with Microsoft on Game Pass and other Windows gaming functionality, and other companies have been exploring the limits of what people will pay for a gaming PC with a screen on it. And of course we’re awaiting a Switch 2 any day now.

Microsoft’s exploration of its own dedicated PC gaming device comes as its broader strategy has outstripped its own Xbox Series X/S consoles. Post-Activision Blizzard acquisition, the company has moved to bring its Xbox exclusives to rival platforms like the Switch and PlayStation 5, reach more players through cloud gaming on mobile, and bring PC gamers into its ecosystem through the Game Pass subscription library.

While an Xbox handheld sounds exciting on paper to longtime fans, it’s still not clear what it would bring to the table that’s missing from the Steam Deck, Rog Ally, and Switch. Still, that question hasn’t stopped it from continuing to invest in its line of Surface laptops. It’s not hard to imagine seeing one of those transformed into a gaming-first device, though no doubt more challenging in practice.

And plans can always chance. At one point Microsoft was also working on an Xbox TV streaming box that would let anyone access Game Pass without needing to buy an expensive console. Instead, the company opted to work directly with smart TV manufacturers to integrate that functionality. The company’s much hyped Xbox mobile gaming store is also still MIA. Still, it sounds like Spencer thinks the overall market is trending away from walled gardens, whether on Xbox, iPhone, or beyond.

“I think the ball is moving in the right direction,” Spencer said. “I think this idea of open platforms, where users have more choice, creators have more choice, you see the momentum, right?”