Xbox Set to Launch Handheld Console as Microsoft Shifts Focus Beyond Home Consoles

In a bold move that could redefine its place in the gaming industry, Microsoft is reportedly preparing to unveil an Xbox-branded handheld console, marking a strategic pivot from the company’s traditional focus on home-based systems. According to sources close to the project, the handheld is in advanced stages of development and could be formally announced as early as later this year.

This potential shift comes amid changing trends in consumer behavior, with mobile and hybrid gaming gaining significant momentum. The wild success of the Nintendo Switch and the recent surge of interest in devices like the Steam Deck and ASUS ROG Ally have demonstrated a clear appetite for high-performance gaming on the go. Microsoft appears poised to tap into this momentum, with insiders claiming the new device will prioritize Game Pass integration and cloud streaming, but also offer local play — a significant demand from Xbox loyalists.

Phil Spencer, Head of Xbox, hinted at such a development during recent interviews, expressing interest in expanding the Xbox ecosystem beyond traditional consoles. “We’re thinking more about Xbox as a platform, not just a device,” he said earlier this year, fueling speculation about Xbox’s future hardware slate.

While Xbox has long leaned into cloud gaming through services like Xbox Cloud Gaming (formerly xCloud), a dedicated handheld would represent a tangible commitment to mobile experiences that aren’t entirely dependent on an internet connection. Analysts speculate the handheld could feature a custom chipset designed in collaboration with AMD, bringing console-quality performance to a portable format.

Microsoft’s push into handheld hardware would also align with its broader strategy of ecosystem unification. With Game Pass at the core, users would be able to carry their libraries, cloud saves, and achievements seamlessly between console, PC, and handheld.

As the next Xbox showcase looms, fans and industry watchers alike are eagerly awaiting confirmation of this major hardware evolution. If Microsoft pulls it off, the handheld could give Xbox a fresh edge in an increasingly competitive market — one where playing anywhere is no longer a luxury, but an expectation.