There is a new rumor circulating regarding a handheld version of the Xbox as it is now being claimed that Microsoft is indeed working on the console, which will reportedly be released in the coming years.
According to the rumor, the company is positioning this console to rival Valve's Steam Deck.
Microsoft is Reportedly Developing an Xbox Handheld Console
A new report from Windows Central has revealed that internal information from Microsoft suggests that the company is now developing its own handheld gaming device. While Microsoft has become well-known in the gaming industry for its Xbox consoles, the company has not produced any handheld or portable gaming consoles in its history.
This report follows a recent interview by License Global with Microsoft where the company detailed its plans for the upcoming Halo and Xbox anniversary this 2026.
However, while these plans are already set in motion, it was not specified by the company if these plans involve any handheld devices. Xbox head Phil Spencer previously admitted that going the handheld route will enable players to enjoy Xbox "natively."
Xbox Handheld to Take on the Steam Deck
In the latest rumors, it has been claimed that Microsoft plans of positioning its rumored Xbox handheld device as a rival of the Steam Deck. Microsoft has yet to make any official announcement regarding such a device, but many are speculating that it will debut in 2026.
Due to this, it has also been claimed that the company will not release a mid-gen Xbox Series X/S.
Handheld Gaming is Now the Deal
The world's gaming industry saw massive shifts from different platform experiences, which started with arcades to PC gaming and consoles. These days, many gamers have also enjoyed the use of handheld devices and mobile gaming.
When it comes to handheld devices, Valve's Steam Deck popularized a new kind of experience where it emulates more of a PC feel that one can bring anywhere. Aside from Valve, both Nintendo and Sony have also released handheld consoles.
While Nintendo's Switch made handhelds popular again, it was not part of the portable gaming console's Windows or Linux-based OS, which replicates the computer gaming experience. Among those were ASUS's ROG Ally, Lenovo's LEGION GO, AYANEO's significant handhelds, and more.
Sony also brought its handheld version with the PlayStation Portal, but it can only work if a user has an existing PS5 console to mirror the experience.
Microsoft and Xbox seem to be the latest ones to hop on the trend of handheld gaming. Should the speculated Xbox handheld device become reality, it seems Microsoft is ready to take on its competitors, particularly Valve.