Microsoft Has Reportedly Cancelled The Dedicated Xbox Handheld Planned For Next-Gen Release

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Xbox Ally Handheld Still Releasing This Year!

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  • Microsoft has reportedly scrapped its plans to release a dedicated Xbox handheld for next-gen.
  • Xbox still plans to release hardware in the next-gen, which different vendors will manufacture.
  • Xbox ROG Ally is still set to release later this year.

Aside from their collaboration with Asus for the Xbox ROG Ally, Microsoft had another handheld in development, which was confirmed by Phil Spencer, the boss. The dedicated first-party handheld was previously scheduled to release during the next-gen console phase.

However, a recent report suggested that Microsoft had sidelined the plans for its first-party handheld to focus on the software side of things. Now, another report has claimed that plans for a dedicated handheld are now altogether scrapped.

Why it matters: We’re now in the Renaissance period of handheld consoles, with the majority of players entering the market, as well as some of them revisiting. Microsoft was set to debut its first handheld console, but unfortunately, that won’t be happening anymore.

Rog Xbox Ally
Xbox ROG Ally Speculated To Be The Most Powerful Handheld On The Market

According to The Verge’s Tom Warren, his sources have claimed that the portable console is completely canceled. Microsoft made this decision to focus on Xbox’s new software platform.

It’s speculated that Microsoft backed down from this decision due to the threats faced in the handheld console space by SteamOS. The OS was shown to deliver better performance than Windows 11 on the Lenovo Go S. The gaming giant is working to combine the best of Windows and the Xbox ecosystem for handhelds.

The first example of their new, redefined software will be showcased with the Xbox ROG Ally, set to release soon.

PlayStation Handheld Next Generation
PlayStation Handheld To Release In 2028, Can Play PS5 Games Natively

Xbox still plans to deliver next-gen hardware, with Asus and other manufacturers set to release devices that will be considered next-generation Xbox consoles.

Nevertheless, expect next-gen Xbox releases to be Windows releases as the gaming giant doubles down on its focus on its ‘Play Anywhere’ campaign. These are exciting yet nerve-wracking times for Xbox and its fan base.

What are your thoughts on this decision by Microsoft? Do you think they made the right call by cancelling this handheld? Let us know in the comments below, or at the official Tech4Gamers Forums.

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