Is It Too Late For Microsoft to Make Xbox Handheld to Compete With Steam Deck and Switch

In recent years, the gaming industry has seen a major resurgence in handheld consoles. This has been driven largely by the success of the Nintendo Switch and, more recently, the release of the Steam Deck. And it looks like Microsoft and Xbox want in on the action.

Xbox head Phil Spencer recently confirmed that a handheld Xbox is in the works. However, the market has already been dominated by the Steam Deck and Switch. And there are already competitors from ASUS and Lenovo. So can Xbox compete, or is this an uphill battle to capture market share?

Microsoft’s Announcement May Be Too Little Too Late

In an interview with Bloomberg, Phil Spencer confirmed that an Xbox handheld is in the works. He highlighted that the Xbox team is experimenting with prototypes but doesn’t expect to launch the device for several years. This might suggest that Microsoft is studying what the handheld market wants before rushing into production.

The Nintendo Switch has been a game-changer since 2017, providing the ability to play console-quality games anywhere. Then the Steam Deck was released in 2022 and gave gamers a way to play PC games on the go. These two set the standard, but there is always competition.

This would have hit 10 years ago

— Uzi Obi (@ObiUzi) November 13, 2024

By the time Microsoft releases its own handheld console, it could face competition not only from these titans but also from emerging rivals like ASUS’s ROG Ally and Lenovo’s Legion Go.

One factor that could differentiate Xbox’s future handheld from others is Microsoft’s substantial cloud gaming infrastructure, which could allow the device to stream console-quality games without needing high-end hardware.

Steamdeck already has access to gamepass and the windows store so I feel like this is an uphill battle to gain market share.

— 🏴‍☠️Nasdorachi🏴‍☠️ (@Nasdorachi) November 13, 2024

If Xbox takes the cloud-based route, it may offer a more affordable alternative for players wanting high-quality gaming on the go without the premium price tag. Cloud gaming does require strong internet connections, which may limit its appeal in areas with less reliable connectivity.

The Company Still Has a Chance If It Does It Right

Microsoft is also committed to improving the Xbox app experience on existing devices. This will offer valuable feedback for the handheld’s final design. Spencer acknowledged the app’s limitations and the desire to improve it on devices like ASUS ROG Ally and Lenovo Legion Go.

By making updates to the app to perform optimally on various handhelds, Microsoft can gather essential user feedback on what works well and what doesn’t. This will ultimately let the company know what’s best. Xbox wants to first understand the market’s demands, and then build.

I think their biggest hurdle is trying to make a handheld friendly ui. The problem with handheld pcs aren’t the hardware but mostly the software. Windows just isn’t suited for mobile use.

— GrimKaiser808 (@GKaiser808) November 13, 2024

Xbox faces an uphill battle in timing. The device’s projected release is still several years out, with Spencer estimating that a launch may not occur until the next Xbox console generation, which is likely in 2028.

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By the time Xbox finally releases its handheld, there may be too much competition, both new and old. Nintendo is already planning to release the Switch 2 within the first half of 2025, and Valve could also improve on the Steam Deck.

To counter this, Xbox is focusing on other parts of the gaming ecosystem, with growth in cloud and PC gaming. Spencer has highlighted the “healthy future” of the Xbox business, citing increased engagement and Game Pass’s success as critical factors for long-term success.