Microsoft reportedly cancels Xbox handheld to focus on portable gaming PCs like ROG Xbox Ally

At the end of May, Jez Corden of Windows Central reported that Microsoft had delayed a future Xbox handheld. Now, after announcing the ROG Xbox Ally portable gaming PC, the company may have permanently shelved the console. According to The Verge's Tom Warren, Microsoft is focusing on delivering a seamless Xbox experience to Windows devices.

Microsoft has begun marketing new games as compatible with "Xbox PC" rather than simply Windows. Warren believes that the ROG Xbox Ally will be the first of many handhelds to support the new software platform. Xbox gamers can expect to launch Play Anywhere games on Windows-powered devices. Also, they can access other formerly exclusive console titles through cloud streaming. However, older Xbox games will need to wait for emulation in development to work on handhelds.

Many critics have rejected the notion that a portable gaming PC, such as the ROG Xbox Ally, is actually a console. Microsoft is trying to entice Series X and S gamers with a full-screen UI that makes navigating Windows less painful. The ROG Xbox Ally also has a familiar control scheme. Still, the Xbox handheld is a reskinned version of a product released in 2023.

Gamers also doubt that the ROG Xbox Ally and ROG Xbox Ally X will compete in sales with Sony and Nintendo consoles. Even so, Microsoft hopes to license its software to more Windows handhelds in the next several years. The company can profit from devices made by many different manufacturers rather than invest in making a new Xbox console.

Disappointed fans may still see a more conventional Xbox console arrive down the line. Warren confirms that Microsoft hasn't abandoned hardware development. Nevertheless, it seems increasingly likely that Windows is the future of Xbox gaming.