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- Microsoft cancelled the first-party Xbox handheld due to AMD demanding 10 million sales.
- The Steam Deck has only managed 5 million sales despite being 3 years since its release.
- This would’ve been a bad deal for the company, so it ultimately cancelled the device.
Xbox recently launched its handheld device in collaboration with Asus ROG. Earlier, there were rumors that the company would launch its own first-party device; however, there was a complication due to which it couldn’t become a reality.
According to a reliable source, Microsoft gave up on the first-party Xbox handheld after AMD demanded over 10 million sales to match its investment in the custom SoC it was supposed to develop for the device.
Why it matters: With the general Xbox sales being quite underwhelming, there was hardly any chance that the handheld would break past the said units sold, so Microsoft made the right call to cancel it altogether.
As per KeplerL2, a reliable name in the industry, AMD demanded that if Microsoft can promise that the first-party Xbox handheld will sell 10 million units, only then will they help them make the device.
However, it would’ve been a really bad investment because handhelds aren’t as popular as regular consoles. For context, the most popular handheld is the Steam Deck, and despite coming out 3 years ago, it has sold just 5 million units.
The other popular ones, like the ROG Ally and Lenovo Legion Go, are still at just 1-2 million units sold. So, in the end, Microsoft made the right call and partnered with ROG for the handheld instead of making its own.
Despite this, the handheld space will still be quite relevant in the years to come. Sony is also reportedly working on a PS6 handheld, but it is a safer bet for them because of the exclusives and more PlayStation users overall.
What are your thoughts on Microsoft cancelling the first-party handheld? Do you think it was the right call? 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.
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