Microsoft has reportedly canceled its in-house Xbox handheld device, shifting focus to the new software platform.
Microsoft held its annual showcase event last week, where it officially revealed the ROG Xbox Ally and Ally X, two new handheld gaming devices built in partnership with Asus. These devices let players enjoy the Xbox experience on the go, with Windows powering the system and a sleek Xbox user interface front and center. It’s a big moment for Xbox fans, as the company finally steps into the handheld market, just not in the way some people expected.
What a lot of folks might not realize is that Microsoft was reportedly working on its own first-party Xbox handheld behind the scenes. According to previous reports from Windows Central, that device was recently “sidelined” while Microsoft focused on making Windows 11 work better for portable gaming.
Now, it looks like we have some new developments on this story.
Xbox First-Party Handheld Canceled, Insider Reveals
According to a new report (paywalled) from Tom Warren, a senior editor at The Verge, the in-house Xbox handheld isn’t just delayed, it’s “essentially canceled.” Warren says that instead of developing its own device, Microsoft is putting all its energy into “Xbox’s new software platform.” The ROG Ally and Ally X are the first examples of this new approach, and Microsoft appears to be betting big on having Xbox work seamlessly across Windows and consoles.
“Microsoft’s own Xbox handheld was reportedly ‘sidelined’ recently, and I’ve heard from insiders that it’s essentially canceled as the company focuses on Xbox’s new software platform,” Warren wrote. “I still think we’ll see next-gen Xbox hardware from Microsoft, but I also strongly believe we’ll see multiple devices from PC makers like Asus that will also be considered next-gen Xbox consoles.”
The main idea here is that Microsoft doesn’t want to be tied to just one device anymore. Instead, it wants Xbox to feel like an ecosystem, where players can pick up a device from Asus or any other partner, boot it up, and immediately get the Xbox experience, complete with access to Xbox Game Pass, PC games, and more.
“This is the tightest collaboration I’ve seen between the gaming organization and the Windows team in my three decades at the company, said Microsoft Gaming CEO Phil Spencer in the recent Xbox podcast episode.
For 25 years, almost, we’ve been working on a console experience where you turn it on and it works and your games are there, and how do we bring that to the Windows ecosystem so you get the freedom of Windows to use the storefronts and the apps you want to use, but it feels like a device that’s purpose-built.”
For now, Microsoft hasn’t officially confirmed or denied the cancellation of its own handheld, and the company is still keeping quiet about any future hardware plans.
As a quick side note, there’s also news on the PlayStation side, Sony is reportedly working on a next-gen handheld that could launch alongside the PlayStation 6. Some early details suggest it might feature 16GB of high-speed memory and AI-powered upscaling, putting it somewhere between a PS4 Pro and a PS5 in terms of power.
What do you think about Microsoft’s decision to focus on platform partnerships instead of building its own handheld? Let us know your thoughts below!
