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Planned Xbox handheld is still “a few years out” so we might get to see it contend with the Steam Deck 2

Plans for an Xbox handheld have yet again been mentioned
Last Updated on November 14, 2024
Steam Deck with Xbox logo and green background
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The last time we heard about the prospect of an Xbox handheld was back in June at the Xbox Games Showcase. That’s when plans for a new handheld gaming device were teased by Xbox CEO Phil Spencer. It’s been nearly half a year since then and now another interview has given us a little more insight as to when an actual device will be available to purchase.

No dates have been confirmed. However, Spencer, in an interview with Bloomberg, admits the “expectation is that we would do something” but any kind of physical device is “a few years out” and the team is working on improving the Xbox app to improve functionality on existing handhelds. We’ve already seen some improvements to Windows handhelds lately such as a Game Bar makeover and new gamepad keyboard.

Xbox handheld could be released around the same time as ‘Steam Deck 2’

We think it’s safe to say that Valve’s Steam Deck is still the king of gaming PC handhelds despite plenty of competition coming along to try and dethrone it. The recently announced limited edition white OLED model is nice to see, but it still doesn’t represent a ‘true’ Steam Deck 2 – nor did the original OLED.

With an Xbox handheld still a few years out and Valve already announcing that it is waiting for a ‘generational leap‘ in hardware before it commits to a Steam Deck sequel, we like to imagine there is a chance these two gaming devices cross paths somewhere down the line. We should specify that this is certainly speculation on our part, but both companies seem to be biding their time.

According to the Bloomberg interview, Microsoft is working on prototypes and putting together what it thinks the best direction is for the project. Likewise, Valve has previously said “future new hardware” is being worked on while still investing in its first-generation Steam Deck LCD.

Steam Deck handheld sitting on table
Valve’s Steam Deck handheld pictured by PCGuide

What does it need to compete with Steam Deck?

While brands like ASUS and MSI have already been announcing and launching improved iterations of their PC handhelds, Valve has held back and wants to wait for a significant leap up before committing to new hardware. It did venture out with the OLED model which chiefly upgrades the display, but this doesn’t speak to the core specs – namely the CPU, GPU, or RAM. In any case, we’d say that any Windows-based handheld needs the power advantage as many users still prefer the streamlined SteamOS that the Deck runs on. Xbox consoles use the ‘Xbox system software‘ operating system based on a version of Windows, for reference.

One component that can provide that leap we’re looking for is the upcoming AMD Ryzen Z2 Extreme processor, the next-gen equivalent to the Z1 Extreme which features in handhelds such as the ASUS ROG Ally or Lenovo Legion Go. However, if Xbox is a few years away from releasing anything, we could be looking even beyond that – and we still don’t know what Valve considers a big enough upgrade to facilitate a ‘Steam Deck 2’.


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Charlie is the Affiliate manager for PC Guide. He has a vast understanding of most PC hardware and consumer essentials, using his knowledge to provide the best products and the biggest deals.