- A report suggests that the Xbox Handheld was nearly canceled due to software differences.
- Xbox wanted a custom-built OS, while Windows’ leaders wanted a specialized version of their OS.
- Now, however, Xbox is in full control of the direction in which the software is headed.
Rumors of an Xbox handheld have been circulating for years now. The company finally launched one in collaboration with Asus ROG; however, it is now also set to release a first-party device, which is reportedly targeting a 2027 launch.
A recent report reveals that the Xbox handheld was almost scrapped due to internal differences with its software. Xbox wanted a custom OS for gaming, while Windows leaders wanted a modified version of their software.
Why it matters: After the chipset, the OS is an integral part of the gaming experience, especially on handhelds. We’ve seen how well SteamOS performs, so custom software would make a lot more sense.

A new report from Fortune Magazine indicates Xbox’s plans for its handheld console, which is expected to be part of the Helix “family of devices“. Currently set to launch next year, an Xbox exec almost cancelled it due to internal differences.
Tensions ran high enough that a senior Xbox executive threatened to scrap the handheld project rather than adopt the Windows build
– Fortune Magazine

Xbox wanted a new operating system, designed specifically for gaming, while Windows leaders wanted a specialized version of their OS. In the end, Xbox is now finally the one that is largely controlling the direction of the OS.
Now, we all know Windows isn’t the best platform for multiple reasons. Yes, it provides freedom due to it being open-source, but custom software will always be the better choice, which is fine-tuned for the hardware.
What are your thoughts on the Xbox handheld being almost scrapped due to internal differences with its software? Let us know your opinions in the comments or join the discussion at the official Tech4Gamers Forum.
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News Reporter
Abdullah is an avid gamer who primarily plays single-player titles. If you can’t find him anywhere, he’ll probably be at his desk playing The Witcher 3 for the millionth time. When he isn’t playing games, he’s either reading or writing about them.

