Although 2025 is clearly the year of the gaming handhelds, Microsoft has yet to show its hand in the space. However, with Nintendo Switch 2 launching next month and the Asus ROG Ally X 2 seemingly coming soon, there have been some new whispers on the type of CPU that may be coming to the mythical Xbox handheld. And it's all to do with backwards compatibility.
Sources, via Jez Corden over at Windows Central, were quick to dispel a recent job posting that hinted towards the next-gen Xbox line running on ARM processors. Instead, they explained that this was likely more to do with ensuring the company's Surface line of tablets and laptops runs better with the Xbox PC apps found on Windows 11.
They clarified that there is not only a new console in development but also a handheld that will come with a docking accessory, much like the Nintendo Switch 2 and its predecessor. This will let players take their existing Xbox games on the go without relying on an ARM-based emulation method. Instead, a similar AMD processor that powers the Xbox Series S/X consoles is expected to be in these next-gen Xbox products, making it seamless for players to download their library between Xbox devices.
Indeed, Valve is still riding high, with the Steam Deck being one of the best handheld consoles you can buy. In addition, the company is currently ensuring that its SteamOS software works on Steam Deck alternatives like the Asus ROG Ally and the Lenovo Legion Go. This means that Microsoft has a lot of catching up to do in this space. However, backwards compatibility could be its trump card, as the idea of being able to play its Xbox-exclusive releases from the past, like Halo 5: Guardians, Dead or Alive 4, or even Blinx: The Time Sweeper, on the go could be a big appeal to longtime Xbox players.
Microsoft has long been a big advocate of backward compatibility since the days of Xbox One, when it announced support for games from past Xbox consoles in 2015, bringing thousands to its then-new console. Although the company wound down the initiative in 2021, it seems to be picking back up again, according to a job listing found via Pure Xbox. It's great timing considering the alleged confirmation that the Xbox handheld will come with a similar AMD CPU to its current consoles.
The latest details suggest we may see a huge library of past games available for the Xbox handheld that have a slim chance of coming to the Nintendo Switch 2. This could give Microsoft a sorely needed advantage in the handheld space as soon as it launches.
Nevertheless, if you don't want to wait to see what Microsoft has planned, take a look at our Steam Deck 2 hub to see what Valve may be planning for its next gaming handheld. Or, if you're looking at something more mobile, check out our guides to the best gaming phones and the best gaming tablets.