For most of 2024, rumors swirled that Xbox was quietly working on a new device for the masses—a Xbox handheld, no less. Not something designed to compete directly with the Nintendo Switch or the many handheld PC devices like the Steam Deck, ROG Ally, and Legion Go, but rather a way for Xbox fans to play their games while away from their consoles, supplementing their gaming experience.
Then things got real when Xbox head Phil Spencer stated in an interview with Bloomberg that “expectation is that we would do something” in the handheld gaming space, though such a device was still a few years out. That statement all but confirmed that an Xbox handheld was in development.
Except, the more I heard and saw speculation about this handheld, the more skeptical I became. I started to believe that this device wouldn’t see the light of day. Why? Well, I have some points you’ll want to check out before calling me crazy. Not that I’m not crazy.
Of course, everything in this article is my personal opinion and does not reflect the views of The Outerhaven crew.
The Handheld Market Is Already Saturated
Let’s start with the most obvious reason for my skepticism. The handheld market is already flooded with devices. I’ve already mentioned several of the popular ones, but there are even more, and let’s not forget that mobile phones are a huge factor in this space.
On top of that, Xbox has been pushing the idea that “everything is an Xbox.” That includes not just traditional consoles but also handheld gaming PCs and smartphones. If you can already play Xbox games on those devices, why would Xbox invest millions in R&D, production, and marketing for a dedicated handheld? Especially when they’ve been telling gamers there’s no need for an Xbox-branded handheld. Phones, in particular, are becoming increasingly powerful, and with controller attachments, they’re already capable of delivering a solid gaming experience.
What Could an Xbox Handheld Offer That We Don’t Already Have?
Let’s say Xbox does go through with its handheld—what then? The device would need to be something special, offering features that other handhelds don’t. And right now, that’s hard to pinpoint.
The Nintendo Switch lets you play all of Nintendo’s exclusive games on a handheld. The Steam Deck gives us access to most PC and Xbox games that have been released for PC, including third-party and first-party titles—albeit with varying performance. Windows-powered handhelds like the ROG Ally and Legion Go take it a step further by allowing access to all PC storefronts, including Steam, Epic Games Store, and Xbox Game Pass.
So, what’s the compelling reason to own an Xbox handheld? I know this sounds overly negative, but I’m just being realistic. I’m looking at this as someone who’s been in the gaming space for a long time and as a consumer. I want a reason to buy this device—if it even materializes.
We’ve all been burned before by gaming hardware that didn’t live up to expectations. Atari Lynx, Atari Jaguar, Ouya, Google Stadia, and yes, even the Xbox Series S.
If Xbox wants to make this device worthwhile, it needs to bring something unique to the table. Personally, I’d love the ability to play the original Xbox games on it. That would be an amazing feature. But given that we didn’t even get that on the Xbox Series X|S, which is a far more powerful device, I’m not holding my breath. Outside of that, a customized OS that does gaming better than anything out there… but more on that later.
What About Power?
One of my biggest concerns with handheld gaming devices is power—both in terms of performance and battery life. It’s a delicate balance. A bigger battery makes the device heavier, while a smaller battery means shorter gaming sessions. A larger screen drains more power. A more powerful SoC increases performance but also consumes more energy. Every manufacturer has to find the right balance, and sometimes, the end result is a compromise that disappoints.
Who wants a device that fails to perform? Especially one that’s core job is to play Xbox games? If this device fails to nail a consistent 1280×720 @ 60FPS, or even 1920×1080, then in my eyes, what’s the point?
While Xbox has a strong track record in hardware, handheld gaming is new territory for them. I worry that they might cut corners to keep costs down, potentially ruining what could be a great device. On the other hand, if they go all-in, the price could be too high for the average consumer.
Let’s not forget that handhelds—outside of the Nintendo Switch—are expensive. We’re talking anywhere from $700 to $1,000. Could Xbox deliver a device powerful enough to run games at an acceptable level without a premium price tag? I’m not convinced.
Developing, marketing, and launching a new piece of hardware would cost millions. Instead, I have a better idea.
What Xbox Should Do
Xbox is already shifting from a first-party console manufacturer to more of a third-party publisher—if you don’t see that, I don’t know what to tell you. So if that’s the plan, then why not go all the way? Instead of developing a handheld, why not create a gaming OS for handheld and PC gaming? This is something that many gamers have been asking for.
There are already too many handhelds on the market. Instead of focusing on hardware, Xbox could invest in software—an operating system that works across handheld devices and PCs. This would be a win-win: it would reinforce Xbox’s commitment to PC gaming while also giving them a foothold in the handheld space without the risks of hardware development.
Valve has already provided the blueprint with SteamOS. And while some claim Linux is the superior gaming OS, Windows still dominates PC gaming. Xbox could capitalize on that in one fell swoop by developing its own OS optimized for gaming. All it needs to do is copy Valve, which let’s be honest, happens all the time in the gaming and tech space. Heck, they could even collaborate with existing handheld manufacturers to create an official “Xbox Gaming Handheld” powered by their OS.
How sweet would that be?
Of course, this is all just my opinion. I could be totally off base. But that’s the fun of speculation—sometimes you’re wrong, sometimes you’re right.
Since we don’t have comments on this site, you’re more than welcome to chat it up with me over on BlueSky, regarding the article. I welcome the conversation, but let’s try and keep it civil. Ok?