There Won’t Be a First-Party Xbox Handheld and We All Know Why

It seemed for a moment as if Microsoft was gearing up to join the handheld gaming console market, developing a device that could potentially go head-to-head with the Steam Deck, the original Nintendo Switch, and the upcoming Nintendo Switch 2.

Based on various sources, work started prematurely on a mobile device under the Xbox label. However, it appears that this project has been silently put on hold by Microsoft. As per The Verge, Microsoft has decided to abandon their internal plans for an Xbox-branded portable gaming device.

Rather than diverting resources elsewhere, the company is presently focusing on enhancing Windows’ gaming capabilities and granting its Xbox system for licensing to external producers.

Is The ROG Ally An Xbox Console?

Indeed, rather than developing their own standalone device, Microsoft collaborated with ASUS to produce the ROG Xbox Ally and the high-end Ally X instead.

As a dedicated Xbox fan, I’ve come to realize that while these gadgets bear a resemblance to portable PC gaming devices, they fall under the expansive umbrella of the Xbox family.

The controls are reminiscent of an Xbox, it runs a version of Windows 11 tailored for handheld devices, and it comes with direct access to Game Pass and other Xbox services.

As a gamer, I’m excited to share that Microsoft is transforming Xbox into a versatile platform that spans across various devices, not just a single piece of hardware. This means more gaming opportunities for me, no matter what device I’m using!

Why Did Xbox Pull the Plug on Its Own Handheld?

The action aligns with Microsoft’s strategy to emphasize software, service, and operating system integration rather than producing console hardware.

As a devoted enthusiast, I’d rather see our tech giant invest their resources into refining and securing a Windows-based system, rather than embarking on the challenging journey of designing and marketing a brand new, proprietary handheld device from the ground up. It seems more practical and secure in my opinion.

Microsoft understands that they can continue generating revenue through licensing fees, Xbox Game Pass subscriptions, software sales on various platforms, all while avoiding the expense of manufacturing hardware themselves.

Long-term Xbox enthusiasts find themselves disgruntled due to the fact that not every Xbox game is playable on personal computers, and only some of these titles participate in the Play Anywhere initiative.

As a gamer, I’ve found that a significant chunk of the Xbox library, especially the classic and exclusive games, remains out of reach when I want to play them on portable PC devices such as the Ally.

Some gamers were anticipating Microsoft to introduce a genuinely mobile version of the Xbox, capable of running their current digital game collections without modifications. However, at this point, it seems that these players might need to be patient for improved compatibility options or resort to cloud-based streaming instead.

Is Microsoft Playing It Smart?

Looking at it business-wise, the choice is smart and logical.

In simpler terms, there are lots of portable gaming devices available now such as the Steam Deck, Lenovo Legion Go, and future versions of the Nintendo Switch. Rather than trying to match them with our own hardware, Microsoft is allowing ASUS to handle that challenge and instead focusing on enhancing Xbox features within Windows.

This implies enhanced functionality, user interfaces controlled by controllers, and potentially emulation capabilities (though it’s not yet officially verified). Microsoft is moving towards a future where the distinction between consoles and computers may become indistinguishable.

Xbox executives are subtly suggesting a future approach that emphasizes platform uniformity, meaning any device such as a television, computer, or mobile device could operate as an “Xbox” if it runs compatible software and services.

Given those conditions, creating a first-party handheld device could potentially be similar to the existing work on Windows-powered devices.

Is the Dream of an Xbox Handheld Over?

No, the idea of an Xbox-branded handheld isn’t completely dead—it’s just being reimagined.

Microsoft chooses not to manufacture its own gaming device, opting instead for partners to manage the hardware production. Meanwhile, Microsoft focuses on creating the software and services that power the Xbox console.

It’s yet undetermined whether the gamble will succeed or fail, but contrary to popular expectations, Microsoft won’t be releasing an Xbox handheld device as originally anticipated, and this was part of their strategic plan all along.

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2025-06-13 06:43