Microsoft confirms Xbox Handheld development but prioritizes app performance for now

Xbox’s handheld device is in development, but Microsoft CEO Phil Spencer remains focused on optimizing the Xbox app.

Microsoft is venturing into handheld gaming with an Xbox-branded device, but according to Gaming CEO Phil Spencer, the release is still "a few years" off as the company channels its focus into improving the Xbox app on current devices. In an interview with Bloomberg, Spencer addressed rumors and confirmed prototype work is underway, but emphasized the importance of a "full-fledged vision" for Microsoft's entry into the handheld gaming space.

Spencer detailed that the team is actively analyzing market trends and assessing ways to enhance portable gameplay experiences through existing hardware. "Longer term, I love us building devices," Spencer said, "but we want to be informed by learning and what's happening now."

The immediate goal is to elevate the Xbox app’s performance on popular handhelds, with Spencer describing the current app quality as "good rather than great." He also addressed affordability as a critical component in expanding Xbox’s player base, rejecting the high-cost model of $1,000 consoles and instead highlighting creative, adaptive approaches for new devices and access methods.

While no specific timeline has been set, Microsoft’s prototype development aligns with its next console generation projected around 2028, hinting the handheld could debut after that period. The company remains committed to exploring innovative gaming hardware, with Spencer expressing excitement about the future of Xbox's evolving form factors.