Summary
There’s been a lot of buzz about Xbox’s handheld console over the past few months. While a next-gen console is also reportedly in the works, seemingly set for launch around 2027, it sources suggested that the “unmistakably Xbox"handheld device would launch some time this year, However, it seems things have changed.
A report byWindows Central’s Jez Corden, the very same that published the initial report, has now said that it may be a while before we see the handheld, as Microsoft decided to prioritize the improvement of Windows 11 and other third party devices. The first-party handheld is still on its way, but plans have been put on hold for a bit.

Xbox First Party Handheld Console May Launch Later Than Expected
“Microsoft still wants to build its own Xbox handheld in the future,” says the report. “But Microsoft has decided to prioritize its teams to improve Windows 11 gaming performance, specifically for devices like the ASUS partner device “Project Kennan.” It’s possible that the existential threat from SteamOS, which on paper delivers better gaming performance than Windows 11 itself, has informed these decisions.”
While Microsoft still plans to push its first-party handheld, reported sources have stated that it was internally announced earlier today that the company’s priorities have shifted towards Windows 11 performance and third-party devices like Asus' Project Kennan. An official announcement could be made in a few days, depending on how long the delay will be.
While an Xbox handheld hasn’t been officially revealed, Xbox boss Phil Spencer revealed in November last year that the company has been working towards something,possibly still in the prototype phase.
Microsoft’s VP of Next Generation, Jason Ronald gave us a few hints about the console, saying it wouldcombine the “best of Xbox and Windows"and be more PC-oriented. Of course, all of this was said months ago, and things could easily change, given how drasticallyMicrosoft has changed its approach to gamingentirely.
As for the console itself, reports suggest it will be a stand-alone device, capable of running Xbox games natively, unlike thePlayStation Portal, which streams games off your PS5.