TL;DR: Microsoft and Asus recently announced two new Xbox-branded handheld devices: the ROG Xbox Ally and ROG Xbox Ally X. While these represent a new step for Xbox gaming on portable devices, a new report suggests that Microsoft has internally shelved its own Xbox handheld project – one that was never officially announced but had been the subject of considerable speculation.
According to The Verge, Microsoft has "essentially canceled" its native Xbox handheld to focus on the Xbox software platform. Microsoft is still working on the next-gen Xbox console hardware, but the company will also continue collaborating with PC makers like Asus on Xbox-branded portable consoles.
This aligns with Microsoft Gaming CEO Phil Spencer's recent statement that the collaboration between Asus and Microsoft was the "tightest" he had seen during his three decades at the company.
Although Microsoft never officially confirmed plans to release a first-party handheld console, reports of internal development and prototyping had fueled expectations. The reported shelving of the project therefore does not require an official public cancellation.
Earlier reports had suggested that Microsoft was temporarily pausing work on its rumored handheld device to focus instead on improving the Windows gaming experience on third-party portable devices. At the time, it was said that the handheld was not being scrapped entirely, with plans to revisit development later after addressing key usability complaints with Windows on handhelds. However, the latest reporting suggests that these internal plans may now be indefinitely postponed.
Despite this, Microsoft is known to be actively developing its next-generation Xbox console. In February 2024, Xbox president Sarah Bond confirmed that a new Xbox device was in development and promised it would deliver the "largest technical leap" ever seen in a hardware generation. Just this week, chief rival Sony teased the PlayStation 6, dropping their first hints that the console is in early stages of development.
Microsoft has not provided additional details about the next Xbox device or how they plan to achieve such a significant upgrade. Bond also did not share a release timetable.
News of the internally shelved handheld project comes just days after Microsoft and Asus unveiled two new ROG Ally handhelds powered by Windows 11. The devices will boot into the new "Xbox Experience for Handheld," which is specifically designed to boost gaming performance by minimizing background activity and deferring non-essential Windows tasks.
Neither pricing nor an exact launch date has been disclosed for the Asus-made Xbox handhelds, but they are expected to arrive in time for the holiday season. If these devices prove successful, it would make sense for other manufacturers like Lenovo to enter the market with their own Xbox handhelds, alongside the growing wave of portable devices running SteamOS.
Whether there is a large enough audience to support all of these options remains to be seen, as they appear to target a more hardcore gaming crowd compared to the ever-popular Nintendo Switch 2.
Online speculation suggests that the ROG Xbox Ally X could cost over $1,000, while the standard ROG Xbox Ally is expected to be priced more competitively.
