Microsoft has temporarily halted work on its own Xbox handheld device, focusing instead on optimizing Windows 11 for portable gaming PCs. The company is prioritizing improvements to existing device user experience over creating its own hardware.
G. Ostrov
According to exclusive data from Windows Central, Microsoft has made a strategic decision to temporarily postpone development of its own Xbox handheld device. Instead, the company has focused efforts on dramatically improving Windows 11 performance for portable gaming PCs.
Microsoft's Strategy Shift
The company's own Xbox handheld project, known by the codename "Pembroke," has been temporarily shelved in favor of a broader Windows 11 optimization initiative. Microsoft decided that improving the operating system for existing portable gaming devices would provide more benefit in the short term.
The company continues work on "Project Keenan" - a partnership program with PC manufacturers to create Xbox-branded portable devices based on Windows 11. This project remains a priority and could be unveiled as early as late 2025.
Focus on Windows 11 for Portable PCs
Microsoft acknowledges that the current version of Windows 11 is not optimized for portable gaming devices. The company plans significant improvements:
- Interface: Adapting the user interface for small screens and touch controls
- Performance: Optimizing power consumption and performance for portable devices
- Gaming Experience: Integrating the best Xbox features into Windows for portable PCs
- Compatibility: Improving functionality with various portable devices from different manufacturers
Competition with SteamOS
Microsoft's decision is partially motivated by the success of Valve's Steam Deck and the SteamOS operating system. Portable PCs running SteamOS demonstrate impressive performance and ease of use, creating serious competition for Windows devices.
Microsoft views SteamOS as an "existential threat" to Windows in the portable gaming device segment and aims to eliminate this advantage through deep optimization of its operating system.
Existing Portable Xbox Projects
Despite pausing "Project Pembroke," Microsoft continues developing several directions:
- Project "Keenan": Partnership with PC manufacturers to create Xbox-branded portable devices
- Xbox Cloud Gaming: Development of cloud gaming services for portable devices
- Xbox Game Pass: Service optimization for portable PCs
Market Impact
Microsoft's decision could significantly impact the portable gaming PC market. Improving Windows 11 could make devices from ASUS ROG Ally, Steam Deck, and other manufacturers more attractive to users.
Analysts suggest Microsoft may present significant Windows 11 updates for portable devices at the Build 2025 conference in May or at the summer Xbox Showcase.
Future of Xbox Handheld Devices
While Microsoft's own device has been postponed, the company hasn't abandoned plans to enter the portable gaming console market. The project may resume after completing Windows 11 optimization work.
Official information about Microsoft's plans can be found on the official Xbox website.
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