Microsoft Reportedly Pauses Development On Xbox Handheld

Last year, a story broke that Microsoft was working on prototypes for an Xbox handheld console that could potentially compete with Valve's Steam Deck. However, a new report suggests that Microsoft is putting aside its ambitions for a dedicated Xbox handheld, at least for now.

According to Windows Central, Microsoft is shifting its priority away from its Xbox handheld to focus on improving the gaming performance of Windows 11 on third-party handheld devices including ASUS' Project Kennan. The report notes that Microsoft still has ambitions of releasing its own handheld and it's developing additional technology towards that goal. But for the immediate future, that's not a priority.

There have been rumors about Xbox handheld consoles for the better part of the last two decades. Microsoft Gaming CEO Phil Spencer has confirmed that there were Xbox handheld prototypes in the past, none of which made it out of development.

Spencer acknowledged the possibility of a new Xbox handheld last year without directly confirming it. He also suggested that any Xbox handheld was still "a few years out." More recently, Spencer demonstrated how he plays his Xbox games on the Lenovo Legion Go. He also shared his belief that the "team could do some real innovative work" on an Xbox handheld.

There have been prior reports that the next-generation Xbox console may support a handheld device, perhaps in a similar way to the Nintendo's Switch. Windows Central's latest reports suggests that development on the next Xbox console was not impacted by the decision to pause the potential handheld, which may call the earlier report into question.

Earlier this year, Xbox president Sarah Bond suggested that Microsoft's next home console will offer the "largest technical leap" in Xbox history. But for now, Microsoft has yet to disclose any details about that system or when it may be released.