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Microsoft Shifts Xbox Handheld Strategy to Partner-Built Devices

Microsoft is refocusing its gaming strategy around a software platform for third-party handheld PCs developed with Asus.

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Overview

  • Microsoft has canceled its in-house Xbox handheld project to concentrate on developing its Xbox software platform for third-party manufacturers.
  • Asus ROG Xbox Ally and ROG Xbox Ally X devices running Windows with a custom Xbox interface are slated to launch by late 2025.
  • Xbox chief Phil Spencer called the Xbox-Windows collaboration the tightest of his three-decade career as Microsoft blends PC openness with console-style gaming.
  • The updated platform will offer a console-like interface and integrate Xbox and PC libraries, letting users access games from multiple storefronts on a single handheld.
  • Microsoft’s next-generation Xbox console remains on track for a 2027 release, expected to deliver its largest technical leap yet.