well-known industry insider has recently claimed that one of Microsoft’s next-gen Xbox consoles will be a handheld device. This news is part of a broader overview of Microsoft’s future Xbox strategies. Speculation about Microsoft’s interest in portable gaming has been building for some time, with Microsoft Gaming CEO Phil Spencer himself fueling Xbox handheld rumors in early 2024.

Why an Xbox Handheld?

While portable gaming has seen immense success with devices like the Nintendo Switch and Game Boy, many manufacturers have struggled to replicate that success. If the rumors are true, Microsoft’s upcoming handheld will aim to stand out in an already competitive market. There’s potential for it to offer features beyond those of current portable consoles, such as deeper integration with Xbox Game Pass and Xbox Cloud Gaming.

According to Jez Corden of Windows Central, the next generation of Xbox consoles will include a handheld device that might succeed the Xbox Series S. On September 21, Corden shared that the Series S successor will come in handheld form, breaking from the traditional design of its predecessor. This would be part of a dual-model lineup, with Microsoft continuing to offer both a handheld and a traditional home console.

Corden has previously mentioned that Microsoft’s future hardware will focus heavily on AI. Specifically, the handheld could incorporate features like Microsoft’s Copilot AI, enhancing user experience through personalized assistance or other AI-driven functionalities. Another focus could be cloud gaming, which has been a major part of Microsoft’s strategy since the introduction of Xbox Cloud Gaming (formerly xCloud) in 2018. These technologies could further distinguish an Xbox handheld from its competitors.

In contrast to Sony’s upcoming PS5 Pro, Corden reports that Microsoft isn’t planning a more powerful upgrade of its current-gen consoles. While Microsoft is releasing updated versions of the Xbox Series S and X—featuring more storage capacity—none of these models will feature significant processing power upgrades. Instead, Microsoft’s focus for the next generation appears to be on handheld innovation and cloud gaming advancements.

According to several top executives, including Phil Spencer and Xbox President Sarah Bond, the next generation of Xbox consoles will bring the largest technological leap ever seen in console development. While specific details remain unclear, the tenth-generation Xbox hardware, expected around 2028, will likely aim to push the boundaries of cloud and AI technologies, making the Xbox handheld a potential game-changer in the portable gaming world.