Xbox handheld with local play functionality hinted at by Phil Spencer

AYANEO Kun, Source: VideoCardz.com
Shortly after the Xbox Showcase, where the company presented updated Xbox Series S and X consoles with increased storage options and new color schemes, Xbox Chief Phil Spencer was interviewed by IGN. They asked him about the rumors surrounding a gaming handheld from Xbox.
Microsoft’s Xbox chief, Phil Spencer, has been hinting at the possibility of an Xbox handheld for several months. Earlier this year, Spencer expressed his enthusiasm for handhelds, indicating a growing interest within Microsoft. In a recent interview with IGN, he made his most explicit statement yet, saying, “I think we should have a handheld, too.”
Spencer had already mentioned that he likes his ROG Ally, Lenovo Legion, and Steam Deck, all of which are independent gaming handhelds with either Windows or SteamOS operating systems. However, the biggest disadvantage of Windows-based handhelds is still the system itself, which is not intuitive and doesn’t make using of multiple storefronts and launchers any easier.
However, Spencer emphasized that being able to play locally on such a device is very important. This likely means that whatever is being developed at Xbox, it is not a simple streaming device like PlayStation Portal, a gaming handheld that connects to the PS5 console and streams games.
The ideal device would allow gamers to play both Xbox and Microsoft Windows games, including those on Steam. This would require a significant overhaul of the gaming side of the Windows system, which may seem complicated. Microsoft’s current focus is clearly on the Copilot integration, but with new gaming handhelds launching almost every month, consumers will expect Microsoft to act. Otherwise, communities may start developing their own solutions.
Spencer did not confirm or deny that a gaming handheld is being developed, but he mentioned that yesterday’s Showcase was only about the games, even though the company introduced updated Series S/X consoles. He said, “Today was about the games… but we will have a time to come out and talk more about platform.” Hopefully, this means we will hear about Microsoft’s plans for battery-powered systems later.