Rumors about an Xbox gaming handheld have been circulating for a year now, and with good reason.
Microsoft Gaming CEO Phil Spencer has not shied away from discussing the company's plans to develop the product.
In March 2024, Spencer exclaimed "I want my Lenovo Legion Go to feel like an Xbox" in a Polygon interview, even going so far as to say what he's frustrated by from these devices "Are more Windows based than device-based."
In a June 2024 interview with IGN, he said, "I think we should have a handheld, too." He also confirmed that the company is working on "Different form factors and different ways to play."
It's hard to read this as anything other than confirmation that an Xbox handheld is coming, which a report from Windows Central might further corroborate.
On Monday, Jez Corden reported that Microsoft partnered with a PC gaming OEM to create a Windows gaming handheld that utilizes Xbox branding, from official Xbox buttons to similar designs to the company's gamepads. It will launch in 2025.
However, this Xbox gaming handheld might not be the one you're looking forward to.
Don't get too excited yet — This isn't the Xbox handheld you want
Windows Central reports that this upcoming Xbox-branded Windows gaming handheld is distinct from the previously rumored Xbox handheld that would launch alongside the next generation of Xbox consoles. Corden claims that new consoles are slated for 2027, with the plan being a proper console that is a successor to the Xbox Series X and a more affordable alternative in the form of an Xbox handheld.
The 2025 Xbox-branded Windows gaming handheld will likely resemble existing products like the Asus ROG Ally, Lenovo Legion Go, and MSI Claw. Microsoft may work with the unnamed third-party manufacturer to improve its integration with Windows 11 or perhaps offer unique software advantages over typical Windows handhelds.
In the aforementioned Polygon interview, Spencer says, "The things that usually frustrate me are more Windows-based than device-based." Thus, this upcoming Windows handheld may address some of those frustrations.
However, I wouldn't get my hopes too high. Windows 11 is notoriously unfriendly to gamepads, and considering that's the primary handheld control method, it's unlikely that Microsoft can make any changes to address this without first making widespread changes to Windows 11.
Instead, we can expect a more thoughtful operating system and design for the dedicated Xbox console slated for 2027. It will likely feature the same OS as other Xbox consoles and offer a more streamlined experience, similar to using an Xbox Series X, but in the palm of your hand.
That's one of many reasons why the Xbox-branded Windows gaming handhelds isn't the one you should look forward to, but there's more to it than that. We also expect the dedicated Xbox handheld to be cheaper than the Xbox Windows gaming handheld launching in 2025.
After all, the Xbox Series X launched at $499, and if the Xbox handheld is looking to be a cheaper alternative to a dedicated box, and if the next-generation premium Xbox also launches at $499, the Xbox handheld could be at around $399.
$399 is too cheap for a new Windows gaming handheld. Even the Asus ROG Ally Z1, which is the most affordable of the Windows gaming handheld, has an MSRP of $499. At best, we see it at $399 when it's heavily discounted.
It's impossible to avoid the reality that Windows gaming handhelds are more expensive than alternatives like the Nintendo Switch ($299) or Steam Deck ($399). Even the Nintendo Switch 2, which we'll learn more about on April 2, is rumored to be priced around $399.
Compare these costs to the Asus ROG Ally X ($799), Lenovo Legion Go ($699), or MSI Claw 8 AI Plus ($899), and the difference is clear. We expect the 2025 Xbox-branded Windows handheld to fall in the latter price bracket.
What you want from an Xbox handheld is likely coming in 2027
In summary, the Xbox handheld launching in 2027 won't be weighed down by the frustrations of Windows 11 as an operating system, and it will likely feature competitive pricing that can put it on equal footing against the Nintendo Switch 2.
On the other hand, the Xbox-branded Windows gaming handheld launching in 2025 will likely follow in the footsteps of similar products like the Asus ROG Ally or Lenovo Legion Go. While that's exciting in its own right, as I love Windows gaming handhelds, they're undeniably expensive and suffer from Windows 11 not being optimized for gamepads.
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