Why the Handheld Xbox Feels Doomed Before It Even Launches

Look, I want to believe Microsoft knows what it’s doing. I want to believe that after spending literal billions buying up half the games industry, they’re finally ready to deliver something bold, polished, and on time. But the idea of a handheld Xbox in 2025? It’s like watching a team show up to a marathon after everyone else has already crossed the finish line.

The rumor mill and Phil Spencer himself have more or less confirmed it: Microsoft is working on not one but two portable Xbox devices. One is supposedly coming this year, with another one, "next gen," in a few years. Spencer said before that he’s a fan of the Steam Deck and ROG Ally, and it seems like that’s the vibe they're going for: PC gaming in your hands, powered by Game Pass. Sounds great, right?

In theory, yeah. But in practice, it’s a total mess waiting to happen. As GameCentral points out, Xbox's long history of bold ideas with weak follow-through makes it hard to believe this handheld push will be anything more than another flashy misfire.

Let’s talk numbers first. The Steam Deck, despite Valve’s rep and fan loyalty, has sold maybe a few million units. The ROG Ally? Even less. Compare that to the Nintendo Switch, which is closing in on 156 million units sold. That's not a small gap—it's a canyon. The Switch isn’t just the king of handhelds; it’s one of the top-selling consoles of all time. And the Switch 2 is already building ridiculous momentum before even hitting shelves.

Image: WindowsCentral

So Microsoft stepping into this space now feels... off. They had years to develop a handheld. Steam Deck hit in 2022. The Switch came out in 2017. Meanwhile, Xbox was busy throwing Kinect at people, chasing TV tie-ins, or—more recently—just bleeding exclusives to other platforms and hoping Game Pass could carry them.

"The Xbox Series X/S was dead on arrival."

That’s a brutal quote from the source article, but it reflects a deeper truth: Xbox's current-gen consoles never caught fire. They’re being outsold massively by PlayStation, and even the few wins, like getting Call of Duty under their belt, haven’t moved the Game Pass needle as much as expected. Now they want to try portable hardware? Bold. Or desperate.

The article also makes a fair point: unless Microsoft is willing to eat major losses on each unit, like Valve did with the Deck, the price point will be brutal. The ROG Ally is over £500. That’s not mainstream. That’s niche PC gaming money. And even then, the handheld Windows experience is rough. Clunky UIs, awkward input mapping, and inconsistent game support make them way less “pick up and play” than a Switch.

And we haven’t even gotten to the rumored Xbox streaming portable. Supposedly focused on cloud gaming and AI, which sounds futuristic… until you realize we’re still struggling with stable Wi-Fi in coffee shops. If your main feature is streaming, but it only works well at home, what is the point? Just use a phone or a TV.

Image: The Asus portable hasn’t been officially unveiled yet (FCC)

Handheld consoles work when the ecosystem is rock solid. Nintendo thrives because of its exclusives, portability, and simplicity. Valve succeeds with the Steam Deck because of the massive Steam library and Linux mod freedom. Xbox? Its exclusive lineup is thin. Its hardware track record is all over the place. And it's not even clear who the handheld is for.

People who want PC gaming in handheld form already have options. People who want Nintendo’s charm will get the Switch 2. So, who exactly is going to line up for this handheld Xbox? Hardcore Xbox fans? That’s a shrinking base. Game Pass subscribers? Maybe. But if it’s just another way to stream Halo and Starfield, are they really going to drop $400–$600 for that?

There’s also the cultural angle. The Switch carved out a space in both casual and core markets by being accessible and playful. It changed how we think about hybrid consoles and even influenced Sony and Valve. Xbox, by contrast, has spent the last decade playing catch-up while chasing tech gimmicks that nobody asked for. Kinect. Mixed reality. Now, AI and cloud gaming in a pocket-sized box?

Let’s be real: this could easily become another Microsoft “good idea, bad execution” moment. And it’s not like the brand has momentum right now. Xbox hasn’t led the gaming conversation in years. Even its best exclusives struggle to stay in the zeitgeist beyond launch week.

To be fair, if Microsoft nails the design, price, battery life, and Game Pass experience, there’s potential. But they’re going to be fighting uphill against the Switch 2 hype, a skeptical fanbase, and their own reputation. That’s a hell of a lot to overcome.

So yeah, the handheld Xbox is a real thing. And sure, it could be amazing. But when the only thing more consistent than Nintendo’s success is Xbox’s confusion, it’s hard to be optimistic.