There have been recent unconfirmed reports that Microsoft has been developing hardware prototypes for a fully handheld version of an Xbox-branded console. In an interview posted on Polygon this week, but conducted last week at the 2024 Game Developer Conference, Microsoft Gaming CEO Phil Spencer did state that the Xbox hardware team is working on "different hardware form factors and things that [they] could go do" but stopped short of stating that one of those form factors was for a handheld device.
Having said that, Spencer does have some thoughts about what a portable Xbox console might be like. He stated that he had taken the Lenovo Legion Go portable gaming PC to GDC, and he said he had a list of features that he would like to see in an Xbox handheld that the Legion Go currently lacks. He stated:
Forget about the brand. More like: Are all of my games there? Do all my games show up with the save [files] that I want? I’ll tell you one [game] that doesn’t right now — it’s driving me crazy — is Fallout 76. It doesn’t have cross-save. I want to be able to boot into the Xbox app in a full screen, but in a compact mode. And all of my social [experience] is there. Like I want it to feel like the dash of my Xbox when I turn on the television. [Except I want it] on those devices.
Spencer also stated he had thoughts of releasing an Xbox software app that could work on more than one device. He stated that sort of solution could allow game developers to "go build a single version of my game that spans more hardware and reaches more customers."
That brings up another subject that Spencer discussed in another interview on Polygon that was posted today. Spencer said that the current state of the PC and video game industry is that it is not currently growing its audience. That"s part of the reason why we have seen a lot of layoffs in the game industry lately, including at Microsoft, which cut 1,900 jobs from its gaming divisions in late January.
Microsoft recently announced that four older Xbox and PC games are to be released on PlayStation and/or Switch consoles. Spencer stated that move was made ultimately to strengthen the Xbox division. He added:
I know sometimes things get weaponized, that there’s some evil in the background that’s making us do things — ‘Phil hates exclusives and that’s why we’re like PlayStation and Switch now.’ Every decision we make is to make Xbox stronger in the long run. It doesn’t mean everyone’s going to agree with every decision we make. But it is fundamental for how we make decisions.
If Spencer is worried about the growth of the overall game industry, it"s likely we could see some more decisions made from Microsoft"s gaming divisions that will be designed to reach more players than just on the Xbox and PC platforms.