Xbox handheld confirmed by Microsoft Gaming CEO, Phil Spencer

Microsoft Gaming CEO Phil Spencer confirmed plans for an Xbox handheld in an interview with Bloomberg. Xbox executives outlined long-term goals for continuing to build devices, including a heavy focus on the handheld and mobile gaming markets. In addition, the director of Microsoft’s gaming division expressed interest in further acquisitions and partnerships to establish the company’s future growth.

Spencer’s confirmation comes just two months after Microsoft laid off 650 gaming employees for a total of 2,550 jobs cut from the gaming division by 2024. Microsoft Gaming is seeking new deals to grow the mobile gaming company to buy, although there are no specific benefits in the works, perhaps due to the dust settling on Microsoft’s $69 billion purchase of Activision Blizzard in 2023. Despite many moving parts, gamers want more to find out about Spencer’s plans for the Xbox handheld console.

What you know about the Xbox Handheld Console

Gamers will need patience as Xbox continues its Market Research

Previously, the head of Xbox hinted at his preference for handheld consoles, but Spencer hadn’t directly confirmed that an Xbox handheld was in the works until now. With competitors like Nintendo years ahead of the handheld console market, Phil Spencer admitted that “the expectation is that we do something” to bring a similar portable console experience to Xbox players. However, the company has already invested in providing games on existing portable devices through the Xbox app.

I think our team could do some really innovative work, but we want to be informed about learning and what’s happening now.

Xbox continues to prioritize its Game Pass and Cloud Gaming efforts. Spencer explained that the next few months will be spent developing the Xbox app for players’ mobile devices. Additionally, there are plans to work with gaming hardware manufacturers to better serve Xbox experiences for seamless connectivity and sync. At the moment, Cloud Gaming works well for gamers on many devices, but Spencer wants to increase performance on existing hardware to gather insights to improve their own product.

As it is now, gamers will have to wait at least a few years before any Xbox handheld is available. Teams at Microsoft Gaming are developing prototypes, but Spencer’s current focus is on creating a vision that works with Xbox’s broader goals. This approach could be wise for Xbox, as many competitors familiar to gamers will have entered the handheld console market.

The Xbox handheld would compete with a series of portable consoles

Nintendo, PlayStation, and Steam offer gamers plenty of options

Handheld gaming machines have a history dating back to the 1970s and 1980s. Since then, gamers have seen waves of portable products like the Game Boy, Nintendo DS, PlayStation Vita and more. However, as gaming hardware became more advanced to display more powerful graphics, handheld consoles followed suit to give players a wider range of games to play. This recent surge in popularity has brought modern mobile gaming devices into the market, including the Nintendo Switch, PlayStation Portal and Steam Deck.

Released in 2022, Valve’s Steam Deck is the first handheld to be introduced in the ninth generation of video game consoles.. With the Steam Deck, PC gamers have a portable console to play the entire Steam library of compatible games anywhere. The Steam Deck also allows players to enter the world of PC gaming without needing to invest in a high-end PC setup. Having sold millions of Steam Decks since its launch, the handheld console has been well received by gamers. Valve continues to invest in its powerful handheld, making improvements to battery life and more storage in the OLED Steam Deck.

Nintendo has the longest history in the handheld console market, dating back to the Game Boy in 1989. Across all portable devices, the Japanese video game company has sold hundreds of millions of units sold, with over 140 million worldwide for the Nintendo Switch alone. Nintendo’s dominance in handheld consoles is the result of the company’s long-term investment, and it doesn’t look like it’s slowing down anytime soon. Gamers are ready to get their hands on the successor to the Nintendo Switch, which is likely to be forthcoming in the console’s timeline.

The original Nintendo Switch was launched in 2017, and Nintendo confirmed that the Switch 2 will be backwards compatible so that players can access their library of games. With such familiar competitors, the Xbox handheld console must find a place within the market to attract gamers.

Source: Bloomberg