First party Xbox handheld console could still happen according to new rumors

Rumors around a dedicated Xbox handheld have resurfaced after new insider reports outlined Microsoft’s long-term hardware strategy for the brand.

While recent discussion has centered on a next-generation console built around Windows, one outlet now claims the company has not abandoned plans to produce a first-party portable Xbox device, despite earlier speculation that such a project had been shelved.

According to a report from Windows Central, Microsoft is still interested in launching a dedicated Xbox handheld “eventually,” even though its immediate focus is said to be on developing its next mainline console hardware.

Microsoft is still said to want a first-party Xbox handheld

The report states that the handheld project is no longer the company’s top priority, but remains part of its broader roadmap as it looks to expand the Xbox ecosystem across multiple form factors.

This would mark a shift from previous rumors that suggested Microsoft had walked away from producing its own portable console, opting instead to lean on third-party manufacturers.

Those efforts include devices such as the ROG Xbox Ally X, which Microsoft previously positioned as a preview of how future Xbox experiences could extend to PC based handheld systems. The device was built in partnership with ASUS and runs Windows with an Xbox-focused software layer.

Windows Central did not provide timing for when a first-party handheld could launch, nor did it detail what hardware specifications such a system might feature. Instead, the outlet emphasized that Microsoft’s near-term attention is on improving gaming across Windows and preparing its next flagship Xbox platform.

Separate commentary from AMD leadership has previously hinted at a potential 2027 window for Microsoft’s next console generation, but the handheld is not believed to be part of that initial rollout.

For now, the report frames the portable Xbox project as something Microsoft wants to pursue in the longer term, rather than an imminent release, leaving questions around pricing, performance targets, and launch timing unanswered.