Xbox confirms that it’s working on a handheld — here’s what we know

There may be an Xbox-branded answer to the Steam Deck on the horizon.

Xbox executive Phil Spencer hinted at this possibility in an interview with Bloomberg that was published on Wednesday. As he put it, the "expectation is that [Xbox] would do something" in the handheld gaming market and the company is working on prototypes right now.

According to Spencer, you shouldn't expect to see the fruits of that labor for at least a few years.

Unfortunately, that's about all we know. Spencer didn't share specifics, as those details may not exist yet. One only needs to glance at the handheld gaming market to make an educated guess about Microsoft’s possible plans. The enduring popularity of the Nintendo Switch, along with the recent success of high-end handhelds like Steam Deck and Asus ROG Ally, indicate that there's a strong demand for console-quality games in a portable format.

Given that Xbox is all in on Game Pass as a service these days, it would make sense for the Xbox handheld to have robust Game Pass support. Of course, this would mean the device would need enough power to handle Game Pass titles, which frequently include big-budget AAA releases — games that some critics say the Steam Deck struggles with.

There’s also a chance that Xbox could go through the prototyping process, decide it’s not satisfied with the results, and abandon the project altogether. We’ll likely know in a couple of years.