The Xbox handheld gaming console that Microsoft was rumored to launch within the next few years has reportedly been cancelled. Days after Asus launched the ROG Xbox Ally, reports emerged that the company may have abandoned plans to launch its own handheld gaming device, which was expected to compete with the Nintendo Switch 2. Microsoft is expected to focus on its new Xbox software platform, which is expected to enable third-party OEMs to design their own Xbox-branded handheld gaming consoles.
Microsoft to partner with third-party handheld device manufacturers
Citing insiders with knowledge of Microsoft’s plans, The Verge reports that the company has “largely scrapped” plans to develop its own handheld gaming device. The Redmond company will no longer develop its own compact console, but will continue to develop the Xbox software that debuted on the recently launched Asus ROG Xbox Ally and ROG Xbox Ally X.
Meanwhile, Microsoft Gaming CEO Phil Spencer said that Microsoft will continue to work with third-party OEMs that want to launch their own Windows handheld gaming computers. “This is the tightest collaboration between the gaming organization and the Windows team that I’ve seen in my thirty years at the company,” he said during a recent Xbox podcast.
These new handheld gaming consoles from Asus run on Windows, but users won’t be able to see the actual Windows UI when the devices become available later this year. Instead, an Xbox-themed UI will allow them to launch games or apps through a launcher that offers a console-like experience, just like SteamOS. This can solve several problems that users may encounter when using Windows on devices with 7-inch or 8-inch screens.
A few weeks ago, Windows Central reported that Microsoft had paused development of the Xbox handheld game console, which was expected to arrive alongside the next-generation Xbox console. The company is said to be focusing on optimizing gaming performance in Windows 11 to make it run better on handheld consoles.
The company has reportedly stopped calling new PC games Windows-compatible games and will instead start referring to them as “Xbox PC” games. In addition to Xbox PC games designed to run on the handheld console, the Xbox PC app will be able to display Steam games. However, it seems Microsoft still has a lot of work to do before you can use an emulator to play Xbox games on an Xbox PC.
