Rumors about Microsoft's handheld gaming device have been circulating for quite some time now. However, a report from the previous year indicated that it may not be released until 2026. In a recent chat with Bloomberg, Xbox leader Phil Spencer essentially confirmed that the company isn't in a hurry to launch a handheld, mentioning it is, "a few years out."
Focus on Existing Platforms
Currently, the company’s priority is to enhance its Xbox app for current handheld devices. In recent months, they have rolled out various quality-of-life improvements, including the option to save multiple Wi-Fi networks and a more streamlined user interface.
Plans for an App Store
On the mobile side, Microsoft aims to introduce its own app store, similar to the recent efforts by Epic Games. However, this plan faces obstacles from Google and Apple, who aren’t exactly happy about others avoiding their 30% platform fee.
Phil also noted that Microsoft is considering releasing Xbox exclusive games on different platforms, following Sony's recent strategy. This could be a positive development, as it would allow PlayStation users to enjoy beloved series like Gears of War and Halo.
Long-Term Strategy
Microsoft's choice to hold off on an Xbox handheld might ultimately benefit them in the future. Currently, the market has a surplus of Windows-based handhelds that feature relatively underpowered chips. It may take one or two generations for low-power platforms like Lunar Lake, Strix Point, or Snapdragon X Elite to fully develop. Also, adapting Xbox's console OS to function on a handheld will need further adjustments.
Even Valve isn't rushing to unveil the Steam Deck 2. Microsoft could take the opportunity to shake things up with its first Xbox handheld. There's even talk of Sony jumping into the fray, but this time with a real console instead of just a fancy Remote Play device.
Source: Link