Xbox is testing a handheld device, but it’s a long ways off

Xbox CEO Phil Spencer confirmed that the company is working on a handheld device, which has been heavily rumored for quite some time. However, don’t expect it any time soon.

In a Bloomberg interview, Spencer said Microsoft said that a potential device is only in the prototyping stage at this time. Even if the team was set to bring a product to market, it would still be a few years out.

“Longer term, I love us building devices,” Spencer told Bloomberg. “And I think our team could do some real innovative work, but we want to be informed by learning and what’s happening now.”

A lot of handheld consoles and cloud streaming devices have entered the market over the past few years. The space is arguably led by the Nintendo Switch and Steam Deck right now, but there are plenty of other competitors, including the Logitech G Cloud and the Asus ROG Ally. Xbox’s main competitor PlayStation also released a handheld late last year called the PlayStation Portal that just allows players to remotely stream games from their PlayStation 5.

Microsoft executives have been teasing the possibility of a handheld for a while, but Spencer has done a lot of the anticipation-building himself. He’s talked a lot about handhelds in the past, and in June, he told IGN that Xbox is looking to expand its hardware options.

“The future for us in hardware is pretty awesome. The work that the team is doing around different form factors and different ways to play, I’m incredibly excited about,” he said.

However, a roadmap that leaked as part of a recent FTC trial showed Xbox’s plans through 2030, with a dedicated handheld “not in scope for first party.”

In September, Xbox vice president Sarah Bond told Bloomberg that she wants to reach players wherever they play. Xbox Game Pass has expanded to a number of platforms, even allowing Amazon Fire TV users to stream Xbox games.

“I want people to think no matter who you are, you can come to Xbox and find a game,” she said.

Spencer also said in the Bloomberg interview that the company is interested in more acquisitions to break into new markets like Asia, and to tap into mobile gaming. Xbox has already begun its investment into mobile, with the Activision Blizzard acquisition netting them Candy Crush Saga maker King.

“We definitely want to be in the market, and when we can find teams and technology and capability that add to what we’re trying to do in gaming at Microsoft, absolutely we will keep our heads up,” he said.