According to recent statements, sidelining the Xbox handheld project appears to be a strategic move rather than a setback.
- by Fraser Gilbert
One of the most significant updates from the Xbox sphere this week is the apparent shelving of the highly anticipated Xbox handheld, initially rumored for release in 2027. Sources suggest that Microsoft is currently prioritizing support for third-party handheld consoles instead of developing its own hardware.
In response to this development, industry veteran and former Blizzard president Mike Ybarra expressed his support for the decision on social media, stating that he believed it was “absolutely the right move.” Ybarra also questioned the rationale behind creating a first-party Xbox handheld, implying that the market is already saturated with capable devices.
“If this is accurate, I fully agree with the decision. The market is flooded with various gaming devices, and with SteamOS now available on numerous third-party gadgets, building an Xbox-specific handheld seemed unnecessary-more of a PR stunt than a strategic necessity. Instead, Xbox should concentrate on delivering exceptional gaming experiences and fostering vibrant communities.”
Ybarra’s stance underscores a broader industry trend: that hardware innovation should serve the core gaming experience rather than hardware itself. While the current focus appears to be on supporting external devices, there are indications that Xbox has partnered with ASUS to develop a third-party handheld console slated for release later in 2025.
Notably, industry analysts like Jez Corden from Windows Central have echoed similar sentiments, suggesting that the decision to pause the Xbox handheld project might be temporary. Corden points out that the rising performance of SteamOS-powered devices presents a significant challenge for Microsoft, potentially more pressing than developing proprietary hardware.
“Admittedly, shelving the Xbox handheld for now makes strategic sense. Windows 11’s performance on portable devices still needs improvement, and SteamOS’s advancements pose a substantial threat to Microsoft’s hardware ambitions.”
It’s important to clarify that this development does not mean the end of Xbox’s ambitions in handheld gaming. The company remains interested in creating dedicated portable gaming devices; the current pause is likely a strategic recalibration rather than a permanent cancellation. The question remains whether we will see a dedicated Xbox handheld in 2027, or if plans will shift once again behind closed doors.
What’s your take on this? Do you agree with Ybarra’s perspective? Share your thoughts in the poll above or leave a comment below.
[Source: x.com, via x.com]
Fraser Gilbert serves as the News Editor at Pure Xbox, dedicating his efforts to covering the latest developments in the Xbox universe and beyond.
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