Microsoft confirms it's working on a handheld, but it's years away

Also, acquisitions aren't over, and any Microsoft game could potentially come to PlayStation or Nintendo

by · TechSpot

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In brief: Xbox boss Phil Spencer has repeatedly floated the prospect of Microsoft-branded portable gaming hardware over the past few years. A recent interview with Bloomberg offers the first confirmation that the company is seriously pursuing the project, though it remains in its early stages. Spencer also discussed Microsoft's evolving attitudes toward exclusive releases and acquisitions.

During a lengthy interview with Bloomberg, Xbox head Phil Spencer confirmed Microsoft has begun developing a handheld gaming system. However, prospective customers shouldn't expect one to appear for at least a few years.

Spencer explained that the project is in the prototype phase. Microsoft is still exploring the potential capabilities of a handheld and what markets it might serve.

In multiple prior interviews, Spencer praised handheld gaming PCs like Valve's Steam Deck and the Asus ROG Ally. The ROG Ally and other portable Windows-based devices could make Microsoft's Game Pass subscription service accessible to new markets.

One potential path for Microsoft might be a similar machine that serves as a reference for other manufacturers, akin to the company's Surface devices. Although Windows feels cumbersome on small screens, Microsoft has recently made small changes to improve the experience.

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The evaporating exclusivity of the company's in-house games is another controversial topic the interview touched on. Earlier this year, Microsoft released games like Hi-Fi Rush, Pentiment, and Sea of Thieves for PlayStation and Nintendo platforms. Furthermore, Indiana Jones and the Great Circle will come to PlayStation 5 early next year following a December release on Xbox and PC.

In February, Spencer described the ports as a one-off experiment. However, Microsoft appears satisfied with the results, as Spencer told Bloomberg this week that none of the company's properties are off the table regarding conversions to non-Microsoft platforms.

For instance, Halo, the Xbox's flagship series, could make the jump. Although Spencer said it's too early to determine what devices the next entry will support, the franchise's switch to Unreal Engine 5 would facilitate multi-platform development.

The interview also covered Microsoft's growing list of acquisitions such as its historic $69 billion purchase of Call of Duty publisher Activision Blizzard. Spencer confirmed that the company's shopping spree isn't over, indicating that agreements that broaden Microsoft's "geographic diversity" could be attractive. The Asian and mobile markets, where the company lacks a strong presence, could become targets despite the recent closure of Japanese studio Tango Gameworks, which developed the critically acclaimed Hi-Fi Rush.