Microsoft reportedly cancelled its plans to launch a handheld gaming console to compete with Nintendo Switch 2. Instead, the company aims to enhance its Xbox software platform for third-party OEMs to create their own Xbox-branded handheld devices. Reports indicate that this strategic pivot follows the unveiling of Asus's ROG Xbox Ally, which runs Windows but uses a custom Xbox interface. Phil Spencer emphasized this inter-departmental collaboration as significant for Microsoft's future in the handheld gaming market, representing a shift from hardware to collaborative development with other manufacturers.
Microsoft has effectively cancelled its plans for its own handheld gaming console, choosing instead to focus on developing Xbox software for third-party collaborations.
Phil Spencer noted the unprecedented collaboration between the gaming and Windows teams at Microsoft, reflecting a major shift in strategy for handling handheld gaming.
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