Microsoft’s Xbox Handheld Project Reportedly Canceled; OEM Set to Develop Next-Gen Xbox Consoles
Microsoft’s Xbox Handheld Project: A Shift in Focus
Recently, Windows Central, a reputed site focusing on Microsoft and Xbox developments, disclosed that the tech giant has placed its Xbox handheld project on indefinite hold. This decision does not impact Microsoft’s collaboration with ASUS, which recently unveiled the ROG X Ally and ROG X Ally X during the Xbox Games Showcase 2025, slated for release this holiday season.
Changing Strategies: Microsoft’s Future in Hardware
Initially, Microsoft envisioned utilizing its partnership with ASUS as a temporary measure while developing its own Xbox handheld device, intended to launch alongside the forthcoming next-generation Xbox console. However, according to Tom Warren, a journalist for The Verge, these plans seem to be evolving beyond a simple pause and may effectively be sidelined. In his recent paywalled Notepad newsletter, Warren indicates that Microsoft is shifting its focus primarily towards enhancing its software platform.
Warren also hints at the possibility of officially producing next-generation hardware, while noting that original equipment manufacturers (OEMs) like ASUS might design their own iterations of a new Xbox console. This strategy suggests an evolving landscape where third-party entities could contribute to the Xbox ecosystem.
ASUS Handhelds: A Testing Ground for Microsoft’s Vision
Warren posits that the ASUS handhelds may serve as a preliminary trial for Microsoft’s aim of integrating Windows and Xbox more cohesively. This initiative reflects Microsoft’s broader ambition to transform every screen—be it mobile, tablet, or PC—into an Xbox gaming device. He also highlights that the emulation project initiated by Sarah Bond in early 2024 could eventually address some compatibility challenges. In the meantime, services like Xbox Play Anywhere and Xbox Cloud Gaming are critical components in distributing the Xbox brand across various platforms.
Looking Ahead: The Next Generation of Consoles
Last year, Microsoft articulated grand aspirations regarding its next-generation console, pledging that it would represent “the largest technical leap ever seen”from one console generation to another. This declaration raises eyebrows and could hinge on sophisticated implementations such as machine learning algorithms. However, the true nature of these advancements will only be revealed when Microsoft officially discloses details about the upcoming hardware. Currently, speculation suggests the next Xbox might see its launch in 2027, ideally timed for the holiday shopping season.
As the gaming landscape continues to evolve, consumers and industry watchers alike will be keen to see how Microsoft’s strategic pivot impacts both its hardware ambitions and its commitment to software. With partnerships and innovative trials shaping the future of Xbox, all eyes will remain on Microsoft’s next moves.
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