**An Xbox Handheld Could Be on the Horizon, Says Phil Spencer**

There might be an Xbox-branded rival to the Steam Deck in development. Xbox executive Phil Spencer hinted at this potential during an interview with *Bloomberg*, released on Wednesday. According to Spencer, the “expectation is that [Xbox] would do something” in the handheld gaming sector, and the company is already working on prototypes.

However, Spencer warned that it could take a few years before we see any tangible outcomes from these initiatives.

Regrettably, that’s about all the information accessible at this moment. Spencer didn’t share any specific details, likely because the project remains in its initial phases. Still, observing the current handheld gaming landscape allows us to make some informed predictions about Microsoft’s possible direction. The lasting popularity of the Nintendo Switch, in addition to the recent emergence of high-end handhelds like the Steam Deck and Asus ROG Ally, indicates a substantial demand for portable devices that can offer console-quality gaming experiences.

Considering Xbox’s significant investment in Game Pass, it’s logical to anticipate that any Xbox handheld would provide strong support for the service. This implies that the device would need to be powerful enough to run Game Pass titles, which frequently feature major AAA releases — an aspect that some critics contend the Steam Deck has difficulties with.

Naturally, there’s always the chance that Xbox might go through the prototyping stage and opt to abandon the project if the results don’t meet expectations. We will likely have to wait a couple of years to learn the outcome for certain.