Xbox handheld? Phil Spencer hints it is on the radar

In an interview with Bloomberg, Xbox chief Phil Spencer shared a ton of insights into the company’s plans for handheld gaming, expanding in mobile games, and possibly grabbing new acquisitions to widen Xbox's reach.

Starting with handhelds: Xbox is not launching one anytime soon, but Spencer’s team is experimenting with prototypes. For now, they’re focused on making the Xbox app run smoother on existing handhelds like the ASUS ROG Ally. Spencer admitted the Xbox app experience is “good, not great” on these devices, so they’re tweaking it to make it feel more natural and responsive.

Phil's interest in handhelds fits right in with a booming market, with devices like the Nintendo Switch already selling over 125 million units and Valve’s Steam Deck making PC gaming portable. This market is worth billions, and gamers want high-quality gaming that they can take on the go. If Xbox does release a handheld, it could bring Game Pass and xCloud right into players’ hands, appealing to both Xbox fans and new users who want console-level gaming wherever they are.

On the acquisition front, Xbox isn’t done. Spencer hinted they’re eyeing opportunities in Asia, especially after working with Tencent to launch a mobile version of Age of Empires. But Xbox isn’t in a rush for big buys; they’re still busy settling in Activision Blizzard and its mobile hits like Candy Crush and Call of Duty Mobile.

Xbox’s new mobile game store is also in the works, though it’s on pause as the team figures out what’ll make it stand out against Google Play and the Apple App Store. Spencer admitted they’d need a good hook to attract both gamers and creators to a new platform.

Xbox is making some surprising moves in the console world, too. They’re putting more games on rival platforms like PlayStation and Nintendo Switch, with Phil Spencer open to future cross-platform releases. Despite a tough year that included 2,500 layoffs and closing three game studios, Spencer is optimistic about Xbox’s future. With growth in cloud gaming, PC gaming, and strong console usage, he sees a bright path forward—one he hopes won’t rely on $1,000 consoles to reach more players.