Microsoft reportedly delays Xbox handheld in favour of optimising Windows 11

Recent reports indicate a possible shift in Microsoft’s strategy for the portable gaming market. Microsoft’s long-rumoured first-party Xbox handheld is now said to be facing delays, as Microsoft has realised that Windows still needs a lot of work on the power management front to catch up to alternatives like SteamOS.
According to Windows Central, Microsoft has prioritised improving Windows 11 gaming performance, specifically for third-party devices like Asus’s “Project Kennan”, an Xbox-themed handheld. This decision is reportedly influenced by the threat posed by SteamOS, which often delivers superior gaming performance compared to Windows 11 on handhelds. Just this week, tests of the Lenovo Legion Go S running Windows 11 and SteamOS proved that.
While Microsoft continues to affirm its desire to build its own Xbox handheld in the future, it seems the company is now focusing on optimising the underlying OS and fostering a stronger ecosystem for partner devices. As recently as last November, Xbox CEO Phil Spencer hinted that the company was working on something portable, possibly still in the prototype stage. Jason Ronald, Microsoft’s VP of Next Generation, further suggested the device would blend the “best of Xbox and Windows” and be more PC-oriented, functioning as a stand-alone device capable of running Xbox games natively, unlike the streaming-only PlayStation Portal.
We may hear more official news on Xbox’s strategy for third-party handhelds and the supposed Xbox portable console at the upcoming Xbox Showcase, which is slated for June 8th.
KitGuru says: Hopefully, the optimisations targeting Windows 11 handhelds will also benefit the gaming experience on laptops and desktops.