Microsoft Pauses Xbox Handheld Plans to Support Third-Party Devices

Microsoft has reportedly scaled back development on its own Xbox handheld console to prioritize third-party collaborations like Asus. Initially expected to launch around 2027 alongside a new Xbox console, plans have shifted according to Windows Central, which states the focus is now on enhancing Windows 11 gaming for existing handhelds. The Asus ROG Ally 2, which is said to be one of the Xbox-branded devices in the pipeline, has had leaked images appear online as it nears completion with testing ongoing at Microsoft HQ. This decision aligns with the ongoing development of next-gen Xbox hardware, aiming for a substantial technological upgrade in the coming years.

Currently, Microsoft is focusing on third-party handhelds instead of their own development, making a direct release of a first-party console less likely in the near future.

The Xbox Series X, released in November 2020, is known for its powerful hardware and innovative features, setting a standard in the gaming industry. As Microsoft prepares for its next-generation console, expected to offer even greater technological advancements, the shift to partner with established developers for handheld devices reflects its strategy to expand its gaming ecosystem while optimizing performance and reach.