Seeing Steam Deck Perform Better, Microsoft Puts Its Own Handheld Gaming Device on Hold

Microsoft says it is still investing in the idea of a native Xbox handheld, but for now, it will focus on supporting third-party partners and improving Windows gaming.

Microsoft has paused work on its own first-party Xbox handheld device, originally planned to launch around 2027 alongside the next Xbox console. Instead, the company is now focusing its resources on improving Windows 11 gaming performance for third-party handheld devices.

This decision comes as SteamOS, which runs on devices like the Steam Deck, Lenovo Legion Go, and ASUS ROG Ally, is showing better gaming performance and battery life than Windows 11. As a result, Microsoft is putting more effort into making Windows 11 a better platform for gaming on portable devices, as reported by Windows Central.

However, one limitation of SteamOS is that it does not support services like PC Game Pass, which are exclusive to Windows. Microsoft says it is still ...