Microsoft Reportedly Halts Development of Xbox Handheld Device

Microsoft has reportedly decided to pause the development of an Xbox handheld gaming device, which was intended to compete with the popular Steam Deck. This information comes from WindowsCentral, a source known for its insights into unannounced Microsoft products.

The decision to stall the project stems from a focus on enhancing the software capabilities of its Windows operating system, specifically for handheld devices. Before launching its own hardware, Microsoft aims to ensure that its software is optimized for the unique requirements of portable gaming systems.

This strategic move is particularly relevant given Valve's ongoing efforts to improve its SteamOS for independent devices. Recent developments have seen Lenovo's Legion Go S become the first handheld PC officially compatible with both SteamOS and Windows. A comparative analysis has indicated that games perform significantly better on SteamOS, showcasing higher frame rates when tested against their Windows counterparts. For instance, in a test of the game 'Cyberpunk 2077', the SteamOS configuration achieved approximately 59 frames per second (FPS), compared to just 46 FPS on Windows.

These performance differences highlight the necessity for Microsoft to optimize resource management on its handheld devices to avoid being overshadowed by SteamOS, which could establish itself as the standard operating system for such platforms. Therefore, it appears prudent for Microsoft to prioritize software improvements before proceeding with hardware development.

It's important to note that the halted Xbox handheld project is separate from a collaboration with Asus that was announced recently. The Asus device, codenamed 'Kennan', is still set to launch later this year.