Xbox Handheld Looks to Compete with SteamOS

Microsoft's Xbox Strategy: A PC-First Approach to Handheld Gaming

Microsoft's VP of "Next Generation," Jason Ronald, recently outlined the company's ambitious plan to integrate the best features of Xbox and Windows onto PCs and handheld devices. This strategy, revealed at CES 2025, prioritizes a PC-centric approach before expanding to the handheld market.

Ronald emphasized the goal of bringing Xbox innovations to the PC and handheld gaming spaces, leveraging existing console infrastructure. He acknowledged the challenges of the current Windows experience for handheld gaming, particularly its limited controller support and overall user experience compared to competitors like the Nintendo Switch and Steam Deck. Microsoft aims to address these shortcomings by creating a more controller-friendly environment and focusing on the player's game library as the central element of the experience.

While details remain scarce regarding the upcoming Xbox handheld, Ronald confirmed that significant changes are planned for 2025 and beyond. The core objective is to seamlessly integrate the Xbox experience into the Windows ecosystem, moving beyond the traditional Windows desktop experience. He hinted at substantial future investments and promised further announcements later in the year.

A Competitive Handheld Landscape

The handheld gaming market is rapidly evolving. Lenovo's recent unveiling of the SteamOS-powered Lenovo Legion GO S highlights the growing interest in alternative operating systems for handheld devices. Meanwhile, the anticipated release of the Nintendo Switch 2 adds further pressure to Microsoft's timeline. With these competitors making strides, Microsoft will need to accelerate its development to maintain a competitive edge.

In conclusion, Microsoft's vision for the future of gaming involves a strategic shift towards PC-first development, eventually extending to a dedicated Xbox handheld device. The success of this strategy will depend on effectively addressing current Windows limitations and delivering a superior gaming experience that rivals established competitors.