Microsoft's in-house Xbox handheld console appears to be off the table, as a reputable insider has claimed that the project has been "essentially canceled." This development comes shortly after the reveal of the ROG Xbox Ally, a third-party handheld system developed collaboratively by Asus and Microsoft. However, it seems Xbox's long-rumored first-party handheld won't see the light of day due to broader shifts in the gaming giant's hardware strategy.
While Microsoft hasn't officially confirmed plans for a proprietary Xbox handheld, a plethora of industry insiders have been reporting on it over the past year. Leaks and rumors suggested that Microsoft was working on a dedicated Xbox handheld to complement the company's next-gen hardware, as well as its cloud gaming and Game Pass services. Unfortunately, recent developments haven't been all that encouraging for the in-house Xbox handheld.
Xbox Handheld Can Technically Play Some PlayStation Games
Xbox's newly revealed handheld console, the ROG Xbox Ally, will be reportedly able to play some PlayStation games natively on the console.
Just a few weeks ago, reports indicated that Microsoft had sidelined development of the Xbox handheld for now in an effort to divert more resources towards improving Windows 11's gaming performance. Now, according to a new The Verge report penned by notable Microsoft insider Tom Warren, work on Xbox's own handheld has been quietly abandoned. Warren alleges that Microsoft is instead doubling down on collaborations with third-party manufacturers like Asus, as evidenced by the ROG Xbox Ally. Both the Asus-made portables utilize a newer, more optimized version of Windows tailored for a console-like experience, and they now appear to be Microsoft's de facto answer to the handheld market.
Next-Gen Xbox Hardware May Be Sold By Numerous Brands Aside From Microsoft
While this news may incite concerns about Xbox's future as a platform holder, Warren has reassured fans that Microsoft still intends to build future hardware. However, this next-gen Xbox hardware won't necessarily be a traditional console like the Series X. The insider claims that Microsoft will consider multiple devices from PC hardware makers as next-gen Xbox platforms, provided they run Windows. This implies that Microsoft is looking to ditch Xbox's current locked-platform approach and transform it into a more open, software-first platform.
Warren's reporting was somewhat reinforced by Microsoft Gaming CEO Phil Spencer in a recent episode of the Xbox Podcast, where he emphasized the brand's deepening integration with the Windows team. Spencer stated that the collaboration is the "tightest" he's seen in his 30-year tenure, and that an open platform like a Windows PC can be considered "a game console." As it stands, one of the key tenets to Microsoft's next-gen strategy includes developing a slimmed-down build of Windows that delivers consistent UI and performance across various third-party devices - essentially turning any PC into an Xbox.
- Brand
- Xbox / ROG
- Operating System
- Windows 11 Home
- Processor
- AMD Ryzen AI Z2 Extreme Processor
- Display
- 7” IPS, 500 nits, 16:9, 120Hz refresh rate, FreeSync Premium, Corning Gorilla Glass Victus + DXC Anti-Reflection
- Resolution
- FHD 1080p
- Original Release Date
- 2025
