In a recent interview, Phil Spencer, head of Xbox, teased that the customers may see new hardware in “different form factors” in 2025. In other words, they’re looking into creating a new Xbox handheld gaming device. While some fans are excited by the prospect of a Game Pass-powered handheld, others in the industry are asking a tougher question:
Does Xbox have a stable enough future to support new hardware?
The Handheld Boom and Backlash
Handheld gaming has been blowing up lately. The Nintendo Switch has sold over 150 million units and remains a pop culture mainstay, while PC-style portables like the Steam Deck, ASUS ROG Ally, and Lenovo Legion Go have proven there’s an audience for portable power.
The supposed Nintendo Switch 2 Screen – YouTube, Super Nintendo Fan
Now Nintendo has announced the Switch 2, launching on June 5, 2025, at a base price of $449.99—or $499.99 bundled with Mario Kart World.
While some welcome the upgrade, others argue Nintendo is pricing out its core demographic. The Switch 2’s higher price tag is also sparking conversations about the future of handheld gaming. With its loyalty base feeling the sting of rising costs, this could create an opening for competitors like Xbox to step in—if they can deliver a device that’s both powerful and reasonably priced.
Phil Spencer’s Latest Tease
Speaking with iJustine and Jenna Ezarik, Spencer said he’s “very excited” about the hardware team’s work on new form factors. While he didn’t confirm a handheld directly, insiders suggest the device could resemble a Windows-based portable, capable of running Game Pass, streaming via x-Cloud, or even supporting PC installs.
Is Xbox Stable Enough to Launch Hardware?
Xbox isn’t exactly on solid ground. According to The Wallstreet Journal, the company is still reeling from major layoffs and internal restructuring—part of what’s been called the “worst wave of video game layoffs in history.”
A screenshot from Halo: The Master Chief Collection (2019), 343 Industries
Meanwhile, Xbox’s approach to platform exclusivity has radically shifted. Titles like Sea of Thieves and Hi-Fi Rush have jumped to PlayStation and Switch, blurring the lines of what “Xbox” even means anymore. This raises the question: is a new Xbox device even necessary in a post-console world?
The shift away from traditional consoles may make a handheld device even more relevant—but Xbox will need to redefine its approach, focusing on services over hardware if it wants to maintain a foothold in the market.
What It Would Need to Compete
If Xbox does move forward with a handheld, here’s what it would need to succeed:
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A sleek, durable design with true portability.
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Long battery life (not a Steam Deck-style paperweight).
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Seamless Game Pass integration with offline play options.
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A competitive price, especially with Switch 2’s pricing causing sticker shock.
A screenshot from Halo 2: Anniversary (2020), 343 Industries
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Half-measures won’t cut it. Xbox can’t afford another misfire like the Xbox One launch—it needs a clear win.
Final Thoughts
Spencer’s tease has fans buzzing—but excitement doesn’t erase uncertainty. Xbox could find a lane in the handheld market, especially with Nintendo fumbling its goodwill. But before it builds the next big thing, it may need to rebuild itself.
The Xbox Series X Console – YouTube, Xbox
If Xbox can leverage its services, address its internal challenges, and find a way to offer real value, it might just carve out a space in the handheld market. Until then, it remains to be seen whether Xbox is truly up for the challenge.
Do you think we’ll see an Xbox handheld console? Sound off in the comments below and let us know!
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