Microsoft suspends development of portable Xbox

Microsoft has paused the development of the project known as Xbox Handheld, a possible handheld console speculated as the brand's entry into the growing mobile gaming market. The information was disclosed by internal sources and outlets such as GameSpot, revealing that the company internally communicated the temporary suspension of the project to reassess priorities and strategies.

The decision comes in the context of a shift in focus from the company, which has been concentrating its efforts on strengthening the Xbox Series X|S and expanding digital services, such as Xbox Game Pass and xCloud, a cloud gaming platform. Instead of expanding its hardware line with a new device, Microsoft seems to prefer consolidating its current ecosystem, maximizing integration between PC, console, and cloud.

The idea of an Xbox handheld gained traction especially after the success of Steam Deck from Valve, and the rise of devices like ASUS ROG Ally and Lenovo Legion Go, which demonstrated the technical and commercial viability of this type of product. In 2023, rumors indicated that Microsoft was already working on prototypes and that the project was in an advanced stage, with full integration with the Windows system and support for Game Pass, something that could offer a hybrid experience between PC and handheld console.

However, the current decision does not represent a definitive cancellation. Sources close to the hardware team indicate that the project has only been temporarily suspended, with possibilities of future resumption if the market and internal resources favor it. The initiative was part of a larger proposal to expand the Xbox brand beyond traditional consoles, something that Phil Spencer, head of the division, had already signaled in previous statements.

“We are always exploring new ways to bring Xbox to more players around the world, but this requires a balance between innovation and responsible execution,” commented a company executive in a previous interview about the future of the brand.

The absence of an official announcement so far generates uncertainties about the real state of the project. However, considering the logistical and financial challenges involved in hardware production — especially in a scenario of high costs and fierce competition — the pause may represent a strategic measure of containment and focus.

Meanwhile, Microsoft continues to bet on its main competitive advantage: the digital ecosystem. With over 34 million subscribers on Xbox Game Pass (data from early 2024), the company seems confident that its future lies more in content distribution than in the launch of new physical devices. Still, for enthusiasts of a handheld Xbox, hope remains alive — just postponed.