Rumours about Microsoft's handheld gaming console have been around for a while. However, a report from last year said it is unlikely to see the light of day until 2026. In a recent interview with Bloomberg, Xbox head Phil Spencer has pretty much confirmed the company is in no rush to release a handheled, saying it is, "a few years out".
For now, the company is focusing on making its Xbox app on accessible on existing handhelds. Over the past few months, several QoL upgrades such as the ability to save multiple Wi-Fi networks and a more compact user interface.
On the smartphone front, Microsoft wants to launch its own app store, similar to what Epic Games did recently. However, it faces challenges from Google and Apple, who are not to thrilled about others bypassing their 30% platform fee.
Phil also said Microsoft is open to launching Xbox exclusive titles on other platforms, similar to what Sony has been doing of late. This isn't necessarily bad, as it will give PlayStation owners access to classic franchises such as Gears of War and Halo.
Microsoft's decision to sit on a Xbox handheld might ultimately pay off in the long run. Right now, the market is flush with Windows-based handhelds with relatively weak chips. It will take a generation or two for low-power platforms like Lunar Lake/Strix Point/Snapdragon X Elite to mature properly. Plus, getting Xbox's console OS to work on a handheld will require additional tweaking.
Even Valve is in no rush to launch the Steam Deck 2. Microsoft could aim to disrupt its launch with its innaugral Xbox handheld. Even Sony is rumoured to get in on the action; this time with an actual console and not a glorified Remote Play machine.
Source(s)
Bloomberg (paywalled)