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Why the new Xbox needs to be a next-gen handheld

Microsoft still doesn’t have its own gaming handheld, but we think a portable next-gen Xbox could help bolster the brand’s struggling sales.

Custom image for 'Why the new Xbox needs to be a next-gen handheld' article with the Xbox loading screen on a Logitech G Cloud handheld with a Halo background

2024 was the worst year for Xbox console sales on record, and while the public face of the company, Phil Spencer, might be smiling through the pain in press appearances, we’re certain that this is something Microsoft won’t be happy about behind closed doors. Well, Mr. Spencer, here’s our idea for a solution: make the next new Xbox a gaming handheld and take the fight to Nintendo, Valve, and beyond.

If there’s anything that the smash hit success of the Nintendo Switch and the Steam Deck OLED, two of the best handheld consoles around, has taught us, it’s that demand for portability is greater than ever. This is in part thanks to the improvement in technology since the days of the Nintendo DS and PSP, with the gap in quality between console and handheld gaming smaller than ever. It’s also due to a handful of brands embracing the handheld form factor, while some of the biggest names in the industry have ignored it or merely dabbled (we’re talking about you, PlayStation Portal).

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Admittedly, it looks like we won’t have to plead with Spencer and the rest of the team at Microsoft about making a handheld Xbox. Late last year, Spencer confirmed that one is in the works, telling Bloomberg that it’s “planning a handheld but it’s years away.” That’s nice and all, but without being too harsh, does the Xbox brand have years to wait? Given that Spencer has also spearheaded the company’s new approach to lending out former exclusive series to its competitors, it seems like it needs hardware innovation now more than ever, and not in the form of a new home console.

The problem Microsoft might have with introducing an Xbox handheld is the same one facing countless brands in the handheld space right now. How exactly do you compete with the Steam Deck OLED and the Nintendo Switch? If you know your stuff, the answer might seem obvious. While both of those consoles are wildly popular, they’re not exactly performance workhorses. The Valve handheld holds up better than the Switch, but even still, we’ve seen performance benchmark tests that suggest the Steam Deck doesn’t hold a candle to the likes of the Asus ROG Ally X or original Lenovo Legion Go.

As far as I’m concerned, the most sensible way Microsoft can grab a slice of the portable pie is by going all-in on performance. Obviously, this presents something of an issue in the cost of manufacturing materials – that’s the reason the new Lenovo Legion Go S doesn’t have an OLED display – but if there’s any brand with the pulling power to make something work, Microsoft is right up there.

This argument is a little dependent on the performance of the Nintendo Switch 2. However, given that the leaks point to it matching the performance of fourth-gen consoles such as the PS4 and the Xbox Series S, Microsoft needs to go one better by offering the console gameplay experience of its latest home console in a handheld.

Outside of souped-up specs, I’ve already written about how I think Microsoft launching an Xbox handheld with its own custom OS rather than Windows 11 could be a major selling point for the brand, but it’s worth repeating. Windows 11 makes the handheld experience feel clunkier than feels necessary, even if it means a lot of them can run Xbox Game Pass games, which is a big reason that more brands are looking to adopt SteamOS this year. Still, SteamOS also isn’t perfect, and Microsoft could pour resources into making its first Xbox handheld standout by having the best handheld operating system around. If I was Phil Spencer, that’s what I’d do.

Whatever happens, we’ll be keeping up with Spencer and the rest of the team at Xbox to get the latest updates on the brand’s handheld plans. If you can’t wait for some new tech, be sure to check out our guides to the best gaming phones and the best gaming tablets while you’re here. Or, if you feel like picking up something a little more nostalgia-inducing, see our list of the best retro handhelds.