Xbox’s first-party handheld ‘essentially cancelled’

After it was reported Xbox’s first-party portable console had been “sidelined”, it has now been claimed the handheld device is “essentially cancelled”.

Xbox’s first-party handheld console is “essentially cancelled”, its been claimed.

While Microsoft has been working with Asus for its ROG Xbox Ally and ROG Xbox Ally X portable devices, the company had also been developing its own in-house handheld, though The Verge’s Tom Warren has now claimed the first-party device has been scrapped altogether.

In his report, Warren wrote: “I’ve heard from insiders that it’s essentially cancelled as the company focuses on Xbox’s new software platform.

“I still think we’ll see next-gen Xbox hardware from Microsoft, but I also strongly believe we’ll see multiple devices from PC makers like Asus that will also be considered next-gen Xbox consoles.”

A few weeks ago, it had been reported Xbox’s first-party handheld had been “sidelined”, with the company instead shifting its efforts to “improving Windows 11 for third-party handhelds” such as the ROG Xbox Ally and ROG Xbox Ally X.

Even so, Windows Central asserted at the time that Microsoft was “still deeply investing in developing its own Xbox gaming handheld technology in the future”, but wanted to primarily work on its handheld console software to compete with the likes of Valve’s Steam Deck and the Nintendo Switch 2.

Xbox boss Phil Spencer previously teased the company was interested in moving into the portable gaming space.

Speaking with IGN, he said: “I think we should have a handheld.

“The future for us in hardware is pretty awesome, and the work that the team is doing around different form factors, different ways to play, I’m incredibly excited about.”

When asked whether a potential Xbox handheld would be cloud-based or could allow offline play, he said: “I think being able to play games locally is really important.”

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