Xbox Handheld Reportedly Sidelined For Now

Summary

Microsoft puts Xbox handheld plans on hold to focus on Windows 11 PC gaming optimization.
Despite internal shift in priorities, Microsoft is still investing in developing own Xbox portable.
Sony also reportedly working on PS5 handheld to rival Nintendo Switch, but years away.

Last year, Xbox division boss Phil Spencer confirmed they are working on a portable gaming device. Since then, rumors have surfaced regarding the portable Xbox, with reports suggesting it’s slated for release this year.

If that got you excited, prepare for the excitement to be deflated, as the latest report mentions that Microsoft’s priorities have shifted, affecting the release of the Xbox handheld.

Xbox Handheld Plans On Hold as MS Wants To Focus On Windows 11 PC Gaming Handheld Optimization

The latest report comes from Microsoft leaker Jez Corden, who mentions that Microsoft isn’t abandoning its portable Xbox plans, but they are being put on the backburner since it wants to prioritize improving the Windows 11 gaming performance for portable devices like ASUS’ “Project Kennan.”

Corden’s sources said that Microsoft is “still deeply investing in developing” its own Xbox portable gaming device in the future. Still, it was announced internally today that priorities have shifted, and are moving towards third-party OEM (Original Equipment Manufacturer) handhelds for now.

For those unaware, Project Kenna is the codename of Microsoft’s partner Xbox handheld being developed with ASUS. This device, which we reported on last month, is expected to be released later this year. While the hardware itself is said to be “finished,” the software side is something that’s still being tweaked.

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The report from Corden also mentions that any confusion regarding what exactly Microsoft’s handheld gaming device is, has now been answered.

Microsoft’s Xbox handheld isn’t being developed to be a portable device that can run Windows 11 PC games on the go, but rather, a dedicated portable that can run full Xbox games. Microsoft is said to have “big ambitions” and is investing heavily to deliver a native Xbox portable, but they are allocating resources right now. Thankfully, there is no mention of layoffs or anything of the sort within Microsoft due to this shift.

As with any unofficial report, treat the information with a grain of salt for now, since these are the types of things Microsoft won’t comment on.

It’s not just Microsoft that’s eyeing a dedicated portable gaming device, as Sony is reportedly working on a PS5 handheld console to rival Nintendo’s Switch. However, this device is “years away” from release.

Given how successful Nintendo is with the portable gaming market, I don’t blame Microsoft and Sony for wanting a piece of that pie. While neither company has made any official announcements about their portable gaming future, the Nintendo Switch 2 is set to be released next week, which I’m sure will establish new sales records for Nintendo.