If Microsoft were to have done a handheld they would have done it by now after the failure of Zune and the downfall of Windows Phones as a platform which I still have my Windows Phone. I doubt Microsoft is going to leap off that cliff with making a hand held console. Only thing that would come close to being a hand held for Microsoft is their Surface tablets full on hand held console I just don't see them doing it. They didn't even jump on the VR train to compete with Sony when Sony popped out their VR headset for the PS4.

Pretty sure XCloud is the portablity route they chose. And everything is seamlessly cross save too, so it is really unnecessary for a proprietary handheld/hybrid.

I think an Xbox Handheld would only work if it runs Windows and can play regular PC games like the Steamdeck can.
Developers do not want to have to optimize for ANOTHER SKU that's significantly weaker than the Series S and knowing Xbox they wouldn't want to put something on the market that would have inconsistent performance or can't run certain games.

But I'm sure an Xbox handheld has more mass appeal than a Steamdeck though so I still think they should do it maybe a handheld with a slimmed down Xbox OS that's only meant for streaming and some entertainment apps would be better. Give it a 7 or 8 inch screen , 5G and a Wifi6 chip and it's good to go.
It would be significantly cheaper than the Steamdeck and have longer battery life than the Switch.

I would get one alongside the Steamdeck

when sony does, its going to shake the gaming industry to its core

i hope phil isn't a sleep at the wheel

You mean their cloud service?

Nah, market saturation

Why would they invest in hardware when there are already 1 billion phones out there with high res screens and internet. With things like the Razer Kishi and similar there is almost zero need to build any new mobile hardware. No they need to focus on getting Xcloud out there and partnering with mobile providers. The Steam deck is cool but it's not something I'd want to have all the time...meanwhile phones on people 100% of the time. A Kishi weighs like 4 ounces.

As a hardcore PC gamer, when you shop for mouse, what do you think the first spec is? lag and mouse response. This 2021 and still that's what this about so you think gamepass won't have any lag?

Not to mention Microsoft hate open source. They barely even care about LINUX

I used to really want an XBox portable when Halo, Fable, Forza, and Gears were at the top of their game. Yea, it would be scaled down, but the co-op potential back then would have been so good.

If they provided competition to the Steam Deck with an XBox Portable then that would be very interesting. The issue I have is Steam Deck has a much bigger library and can run Windows. It's open source, and no online subscriptions. An XBox portable would have to run Windows for me, or have a severe spec upgrade for me to consider it.

GamePass can be used on the Steam Deck if you install Windows, which is free at this point. But, they do have the ability to allow the Windows Store to run on Linux if they developed that support.

Microsoft already slots into the Steam Deck's ecosystem, those who want can install Windows and Game Pass on it, effectively making it an Xbox Handheld, those who just want to use the Base OS will of course use Steam, which Microsoft already sells titles on (Want a handheld Halo Collection? Well If you have Master Chief collection on Steam now then you'll get it on Steam Deck day one).

Microsoft is increasingly becoming a games publisher more so than a hardware manufacturer, there's no reason to make a handheld that frankly wouldn't differ from the Steam Deck at all other than the base OS and default store front.

LOL! Imagine that.

No. Actually they should stop producing hardware all together and make stream boxes.