Microsoft's Xbox handheld already has me concerned
Microsoft is partnering with a PC gaming OEM to make its long-awaited Xbox handheld – and I don't think that's right
🤝 Microsoft's Xbox handheld is being developed with a PC gaming OEM
🤔 The handheld will have an Xbox-inspired design and the official Xbox guide button
👎 Past hardware partnerships have often fallen flat
🤷♂️ Microsoft's evolving software-focused approach suggests the Xbox handheld may not be a priority
A new report suggests Microsoft could release its long-rumoured Xbox handheld as early as this year, putting it in direct competition with the Nintendo Switch 2.
That's incredibly exciting news for those who want a portable Xbox or are patiently waiting for Sony to release a PSP 2. However, the Xbox handheld is reportedly being developed in partnership with a PC gaming OEM. And that's significantly dampened my enthusiasm.
Even though the report says the handheld will feature an unmistakably Xbox-inspired design, including the official Xbox guide button, we've seen countless officially licensed products or hardware partnerships fall flat.
First-party devices come with certain expectations, and generally lead to a more compelling and innovative product. There's a huge difference between a Surface Laptop and other Windows device, for example.
Microsoft only needs to look at its ill-fated Windows Phone partnership with Nokia as proof that a hands-on, do it yourself approach can often be more beneficial than passing the buck. Google has also shown with its Pixel phones that there’s far more success to be had when you’re not relying on other manufacturers.
Safety first approach
Of course, partnering with a PC gaming OEM is a logical and cost-effective solution for Microsoft. Companies like MSI, Asus and Lenovo have already proven they can develop gaming PC handhelds. And it's also true that Microsoft has struggled to sell its consoles this generation, with Xbox hardware continuing to fall as the Redmond-based company further commits to its multiplatform, Game Pass-first approach.
But Microsoft is one of the richest companies in the world. If it wants to compete and capture market share in the handheld market, it needs to do more than simply license the Xbox brand to someone else. It has to take some risks.
An Xbox handheld that only offers a few perks over other Windows-based PC handhelds doesn’t sound like it will move the needle, especially as devices like the Asus ROG Ally X already let you access PC Game Pass, Xbox Cloud Gaming and sport a familiar control scheme.
Just another Xbox?
The Xbox handheld sounds more like how Valve are licensing Steam OS for the Lenovo Legion Go S. While Steam OS is a huge selling point of the Steam Deck OLED, Valve's handheld is the best-selling portable PC by some margin due to its exceptional battery life, gorgeous display, haptic trackpads, and excellent ergonomics.
Valve clearly prioritized these features and optimized the hardware accordingly. These elements could easily have been overlooked if the device was built in partnership with another company.
Microsoft has also positioned Xbox as being no longer constrained to one device. It's "This is an Xbox" campaign, which features the Asus ROG Ally, tells consumers a phone, TV, laptop, PC and handheld are equivalent to its consoles, so why would anyone rush out to buy a dedicated Xbox handheld when we already have several?
Like much of Microsoft's approach this generation, its vision for an Xbox handheld seems rather half-hearted and misplaced. However, it strongly aligns with the company's evolving software-focused approach as it pivots away from competing with Sony and Nintendo to sell hardware.
Adam Vjestica is The Shortcut’s Senior Editor. Formerly TechRadar’s Gaming Hardware Editor, Adam has also worked at Nintendo of Europe as a Content Marketing Editor, where he helped launch the Nintendo Switch. Follow him on X @ItsMrProducts.