Xbox Is Still Building Its Own Handheld, Report Says

Microsoft hasn’t given up on building its own Xbox handheld. According to a new report from Windows Central’s Jez Corden, the company’s in-house portable plans were sidelined — not scrapped — when Microsoft decided to go to market with the ASUS ROG Xbox Ally first.

Corden reports that the Ally partnership was a deliberate strategy: use the ASUS device to gather feedback on the experience that will essentially power the next wave of Xbox console hardware. And, he says, he’s been told Microsoft still plans to make its own Xbox handheld eventually, along the lines of that new plan.

That framing lines up with what Xbox leadership has said on the record. Xbox president Sarah Bond recently explained that the company backed the ROG Ally to refine the user experience before committing significant resources to proprietary hardware — treating the Ally as something like a prototype by proxy, learning about portable play without gambling on early manufacturing.

Meanwhile, Xbox CEO Asha Sharma is painting a bigger picture for the brand’s hardware future. At an internal town hall reported by Windows Central, Sharma told staff that next-generation Project Helix won’t be a single console at all: “We are moving to a family of devices for Gen 10. There is not one device that fits all. We will certainly have a great console first, but we also know that many players will be on the go.”

Sharma added that Microsoft will manufacture some of those devices itself and partner with other companies for the rest, and said the next-generation operating system is “starting to look really good” — a hint that Helix won’t just recycle the Series X/S interface.

The timing makes sense. Handheld gaming is one of the industry’s hottest battlegrounds right now: the Steam Deck proved the formula, Nintendo’s Switch 2 is thriving, Valve is aiming at the living room with the Steam Machine, and Sony’s Portal experiment opened the door to more portable thinking from the console giants. An official Xbox handheld — one with full Xbox services and library integration, unlike the Ally — would give Microsoft a complete answer.

Don’t hold your breath for a launch date, though. Corden’s report suggests a first-party Xbox handheld would arrive after Microsoft’s next major home console, so this is a long-game play: learn from the Ally now, build the real thing later. But after years of will-they-won’t-they, the message from Redmond is getting hard to misread — the handheld Xbox is a matter of when, not if.

Sources: Video Games Chronicle, Fenix Bazaar

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