Report: Native Xbox handheld cancelled as Microsoft reveals new Xbox Ally X duo

Microsoft has reportedly scrapped its plans on a first-party native Xbox handheld device as it reveals new partner Windows PC handhelds alongside ASUS.

Report: Native Xbox handheld cancelled as Microsoft reveals new Xbox Ally X duo
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Senior Gaming Editor
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2-minute read time
TL;DR: Microsoft has cancelled its plans for a native Xbox handheld console, focusing instead on the Xbox Ally and Ally X handheld PCs developed with ASUS. These devices aim to deliver a console-like Xbox experience on Windows, highlighting Microsoft's deep collaboration between its gaming and Windows teams, with launches expected in Holiday 2025.

Microsoft has reportedly cancelled its plans for a native Xbox handheld device, sources tell The Verge.

Report: Native Xbox handheld cancelled as Microsoft reveals new Xbox Ally X duo 8
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Microsoft recently made history with the first Xbox-Windows handheld duo, the Xbox Ally and Ally X, made in conjunction with third-party OEM partner ASUS. Microsoft has said its goal was to bring a console-like experience to Windows using the handheld's Xbox controller-like inputs and design.

Now as the company reveals this new higher-end handheld PC duo there are reports that Microsoft has scrapped its plans for an Xbox handheld that could potentially natively play console games. Sources tell The Verge's Tom Warren that the device has basically been cancelled.

There's also speculation that Microsoft's work with ASUS is a sign of things to come, and that close partners could also theoretically make next-gen Xbox consoles.

Since it's speculative and unconfirmed, it's unknown if these devices would be dual boot and also run Windows, complete with access to multi-store game libraries, but fans on social media are typically in favor of the idea of multi-platform access in one device.

The latter is actually something Microsoft is currently doing on a software and service level with its Play Anywhere program, which could also lay the framework for such an interwoven next-gen Xbox.

Microsoft has also confirmed that it will bring its Xbox-like Windows OS experience to other handhelds, including the ASUS ROG line.

Xbox gaming CEO Phil Spencer also said something very interesting during a recent Xbox Inside podcast:

"This is the tightest collaboration I've seen between the gaming organization and the Windows team in my three decades at the company."

This is particularly noteworthy because Microsoft made a substantial effort to unify its Xbox One and Windows environments together--an effort that goes as far back as 2015. This would have undoubtedly seen both the Xbox gaming and Windows OS teams working very closely together to pull off, and this strategy was critical to where Microsoft's growing games division currently is today.

No pricing has been revealed for the Xbox Ally and Ally X, but both devices are expected to launch Holiday 2025.