Microsoft handheld console: In the wake of the popularity of handheld consoles such as Steam Deck and Nintendo Switch, the big IT giants are paying more and more attention to this market. Thus, Sony released the PlayStation Portal in 2023, and it is logical that the Japanese’s main competitor – Microsoft Corporation – is also interested in releasing a similar device under the Xbox brand. But why, until now, has it yet to do so?

After previous rumours had cooled the hypothesis, according to a new report, Microsoft may be ready to launch its first handheld console in the near future. Current circumstances and market developments could now be favourable to this type of device, which Microsoft has been thinking about for some time but has never materialized. The gaming market is increasingly geared towards portability, as we have seen in recent months, with the blossoming of so many portable consoles and the imminent arrival of new proposals from rivals Sony and Nintendo.

Europe to be convinced

Last September, a year after previous rumours, it emerged that the Xbox handheld console prototype Microsoft was working on had been shelved or, worse, cancelled. The latter was supposed to be entirely cloud-gaming based, and for this reason, like the Xbox dongle for TVs, would no longer be in Microsoft’s plans. In the meantime, Microsoft remains focused on creating a new interface dedicated to portable consoles, which will only be third-party for the time being.

Problems with the UK Competition and Market Authority (CMA) and other regulatory bodies may have weighed on the decision. The CMA, in particular, blocked plans to acquire Activision Blizzard in April 2023 because it believed the company could use the brand’s games to expand its cloud-based game library and deter competitors. Microsoft later submitted an amended acquisition plan to the CMA granting Ubisoft all of Activision Blizzard’s cloud gaming rights for 15 years. It now appears that Microsoft has focused on supporting third-party manufacturers, such as ASUS and Lenovo, in creating their own devices.

Target 2026

Microsoft wants to expand the possibility of playing Xbox everywhere. From consoles to PCs, smartphones, and TVs. After the rumours about the TV dongle for xCloud, the next step could be a handheld console. In the wake of the success of Nintendo Switch and Steam Deck, the time is perhaps ripe to see a first-person market entry with an Xbox-branded handheld console. Unlike the first two, Microsoft’s proposal could be another extension of the Xbox cloud gaming by taking advantage of the Game Pass subscription to play on a handheld console with hardware specifically designed for mobile gaming.

What is certain is that Xbox is about to change, with Microsoft working on two consoles planned for 2026. Two different products are to be launched on the market at the same time: the first hardware will be a traditional premium console like the Xbox Series X, while the second device is described as similar to Switch; thus, the much rumoured portable Xbox, set to be released within a couple of years, contrary to rumours that would see Xbox Next lagging behind PlayStation 6, with the latter ideally expected in 2028.