Despite its recent collaboration with ASUS on the ROG Ally, it looks like Microsoft hasn’t shelved its internal plans for a first-party Xbox handheld console just yet. A new report from Windows Central, highlights a surprising update about Xbox’s future hardware roadmap, and it might just include a mobile-sized twist.
Hold on, Xbox isn’t done with handhelds?
Yeah, you read that right. In the Windows Central report, journalist Jez Corden dropped a juicy nugget that implies Xbox’s handheld dreams are far from dead. Although Microsoft recently shifted gears and partnered with ASUS to bring the ROG Ally to life, that’s not the endgame. Corden suggests this move was more of a strategic pitstop than a full stop.
“Microsoft decided to sideline its own Xbox handheld plans and go to market with the Xbox Ally in partnership with ASUS this year to start gathering feedback on the experience that will essentially power its next wave of ‘console’ hardware. I’m told that Microsoft still plans to make its own Xbox handheld eventually, too, along the lines of this new plan.”
This quote paints a pretty clear picture: Microsoft is testing the waters, and the ROG Ally is more of a test case than a permanent solution. It seems the company wants to better understand consumer needs and gameplay behaviors on portable hardware before diving deep into hardware development of its own.
Why pause the in-house handheld for the Ally?
Last week, Xbox president Sarah Bond explained why the company decided to back the ROG Ally. The focus, she said, was on refining the user experience rather than committing significant resources toward developing proprietary hardware immediately. It sounds like the ROG Ally serves as a sort of “prototype by proxy,” giving Xbox useful data without jumping headfirst into manufacturing.
This potentially paves the way for a smarter, more robust first-party handheld down the line — one that learns from the strengths and limitations of devices like the Ally and Steam Deck.
When can we expect a dedicated Xbox Handheld?
That’s still the million-dollar question. While Corden’s report doesn’t lock in any kind of timeline, it does suggest that the Xbox handheld would likely come after Microsoft’s next major home console. Which, by the way, is already sounding pretty wild: free online multiplayer and all.
So while you shouldn’t expect to see a Microsoft-made handheld drop in 2025 or even maybe in 2026, it’s clearly something that remains on the roadmap. It’s not dead: it’s just back in the lab.
Backwards compatibility? That’s a big maybe
If you’ve played around with the ROG Ally, you probably know that it doesn’t integrate Xbox services or libraries in a fully seamless way. That’s where things could get really interesting with an official Xbox handheld. Given Microsoft’s consistent push for backwards compatibility — especially for digital libraries — it stands to reason that their own handheld would support the same.
The full report on the next-gen Xbox suggests game libraries will carry forward into new hardware, a promise that might become a cornerstone of whatever their future handheld device looks like. Imagine picking up your portable Xbox and instantly diving back into Starfield, Halo Infinite, or even some backward-compatible 360 gems while on the go.
So, what’s the play here?
Microsoft isn’t going handheld tomorrow, but the dream is still alive. Partnering with ASUS allowed them a window into user behavior without gambling on early hardware. But eventually, the plan appears to be to bring that user data in-house and deliver a handheld console that fits Xbox’s broader design ethos — one that could mesh hardware, software, and cloud gaming in a way we haven’t quite seen before.
Until then, the waiting game continues. But one thing’s for sure: the handheld wars are heating up, and Xbox isn’t planning to stay benched for long.