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First-Party Xbox Handheld “Essentially Cancelled”, It’s Claimed

Microsoft seems to be content with not putting out it’s own Xbox handheld console. According to a new report, Microsoft has “essentially cancelled” the first-party Xbox handheld.

At the end of May, it was reported that Microsoft decided to “sideline” the development of its in-house handheld system. Now, just a couple of week’s later, The Verge’s Tom Warren is reporting that the Xbox handheld doesn’t appear to be happening at all.

“I’ve heard from insiders that it’s essentially canceled as the company focuses on Xbox’s new software platform,” Warren writes. “I still think we’ll see next-gen Xbox hardware from Microsoft, but I also strongly believe we’ll see multiple devices from PC makers like Asus that will also be considered next-gen Xbox consoles.”

Speaking of Asus, the company recently revealed its Asus ROG Xbox Ally and Xbox Ally X handheld consoles as part of the Xbox Games Showcase on June 8. The new handheld is built with an ASUS framework but features Xbox branding in the form of controls and operating system. That operating system, while still Windows, is a lighter version of the software to make for easier pick-up-and-play gaming for users.

Xbox’s next-gen mainline console—the follow-up to the Xbox Series X|S—is expected to come by 2027 at the earliest.

Microsoft has yet to respond to Insider Gaming’s request for comment on the report that it is no longer developing a first-party Xbox handheld console. Should a response be received, it will be added to this story.

What do you think of Xbox seemingly cancelling its first-party handheld console? Let us know down below, and join the discussion in the official Insider Gaming forums.


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Written by
Mike Straw
Executive Editor

Mike has been covering the gaming industry since 2012, and has reported on some of the largest events in the industry while also working as an investigative reporter. Outside of…

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