Microsoft has paused its development of a native Xbox handheld gaming console, indicating it may not launch alongside its next-generation consoles in 2027. The decision allows Microsoft to concentrate on optimizing Windows 11 for handheld systems, aiming to enhance performance and battery efficiency in response to competition from Valve's SteamOS. This move does not impact other upcoming devices, like the Xbox-branded Asus handheld. The focus has shifted in light of new competitors emerging in the portable gaming market, such as the anticipated Nintendo Switch 2 and Lenovo’s Legion Go S.
Microsoft's internal Xbox handheld console has been shelved, which indicates it might not arrive in 2027, alongside Microsoft's next-gen Xbox consoles.
The company's decision to focus its efforts on Windows 11 for handhelds might have been spurred by SteamOS' expansion beyond the Steam Deck.
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