Microsoft Reportedly Pauses Development On Xbox Handheld

Last year, a story broke that Microsoft was working on prototypes for an Xbox handheld console that could potentially compete with Valve's Steam Deck. However, a new report suggests that Microsoft is putting aside its ambitions for a dedicated Xbox handheld, at least for now.

According to Windows Central, Microsoft is shifting its priority away from its Xbox handheld to focus on improving the gaming performance of Windows 11 on third-party handheld devices including ASUS' Project Kennan. The report notes that Microsoft still has ambitions of releasing its own handheld and it's developing additional technology towards that goal. But for the immediate future, that's not a priority.

There have been rumors about Xbox handheld consoles for the better part of the last two decades. Microsoft Gaming CEO Phil Spencer has confirmed that there were Xbox handheld prototypes in the past, none of which made it out of development.