Microsoft Shifts Focus from Handheld Xbox Console to Next-Gen Gaming Software Development

Microsoft has scrapped plans for its own portable console to focus on the development of a new Xbox software platform, as reported by Verge, citing sources. Journalist Tom Warren suggests that the company is working on the next generation of traditional Xbox consoles, as well as portable gaming devices in collaboration with Asus and other firms. These portable gadgets will also be classified as part of the next-generation Xbox consoles.

The development of the next-generation Xbox software platform is being carried out transparently, with devices like ROG Xbox Ally and ROG Xbox Ally X. Asus and Microsoft introduced these portable consoles in June of this year. Both devices operate on an optimized version of Windows 11, which in full-screen mode bypasses the desktop, taskbar, and various other processes.

Warren points out that the ROG Xbox Ally and ROG Xbox Ally X will serve as a market experiment to understand the future direction of Microsoft in integrating Windows and Xbox. The journalist believes the company aims to transform any screen into an Xbox.

In June, Phil Spencer, CEO of Microsoft Gaming, indicated that the Windows and Xbox teams are collaborating more closely than ever. This approach is intended to make the gaming experience on PCs more akin to that of consoles, Spencer added.

Initially, the Xbox Ally will not support most console games for Xbox, instead focusing on PC releases.

Microsoft offers the Xbox Play Anywhere service, which allows users to purchase a game for Xbox and receive a PC version. However, only a limited number of publishers are currently involved in this program. Future games, such as Grand Theft Auto VI, will not be available on portable Xbox devices for a while, as Rockstar Games has yet to announce a PC version for the sixth installment. In these cases, Xbox Ally users will only have the option to play games through Xbox Cloud Gaming.