Phil Spencer, the head of Microsoft’s gaming division, has openly expressed his enthusiasm about the potential for an Xbox handheld device. However, in a recent discussion with Bloomberg, Spencer tempered expectations by making it clear that such a device won’t be hitting the market anytime soon.
During the interview, Spencer shared, “We do have plans to create something eventually, but it’s not something people should expect to see for a number of years.”
Spencer continued, “In the long run, I really enjoy the idea of us developing new devices. I believe our team has the capability to create something truly innovative, but we need to be guided by current trends and learn from what’s happening now.”
At the moment, Microsoft is concentrating on enhancing the experience of the Xbox app across existing PC gaming handhelds, alongside examining how Xbox features and games could better integrate with these devices. A recent development includes the introduction of a “compact mode” in the Xbox app for Windows, specially designed for mobile devices. Windows 11 has often been criticized by reviewers for its shortcomings on handhelds like the ROG Ally and Lenovo Legion Go.
The interview also shed light on Microsoft’s intent to pursue further acquisitions beyond its massive $69 billion acquisition of Activision Blizzard in 2023. Additionally, Spencer highlighted that Microsoft is making strides towards establishing mobile game stores, though these plans have faced delays.
The release of the Steam Deck in early 2022 marked a turning point for modern PC gaming handhelds. Although there’s been an OLED upgrade, it hasn’t received a new chip with enhanced gaming capabilities, and Valve has hinted there’s no immediate plan for an update. Many Windows devices in this space, like those using AMD’s Ryzen Z1 Extreme, suggest that the handheld gaming market is still in its formative phase.
Despite Xbox’s position as the third-place console after the Nintendo Switch and PlayStation 5, Spencer remains optimistic. He told Bloomberg, “Our business is doing quite well, which sets up a promising future for both hardware and the games we create.” This confidence stems from the growth in PC and cloud gaming, complementing the traditional console market.
For an Xbox handheld to really stand out, it would need to offer something uniquely different from the Steam Deck and other Windows-based competition from Lenovo, MSI, and Asus. While these developments unfold over the next few years, a delayed entry by Xbox will require a groundbreaking feature to capture market attention.
