Microsoft's foray into handheld gaming aims to blend the best of Xbox and Windows, creating a seamless portable gaming experience. With the imminent arrival of the Switch 2, the growing popularity of handheld PCs, and Sony's PlayStation Portal, the market is ripe for disruption. Microsoft intends to leverage this opportunity, not just by releasing its own handheld console (confirmed by CEO Phil Spencer, though specifics remain undisclosed), but also by significantly improving Windows' handheld gaming capabilities.

While Xbox services are accessible on existing handheld devices like the Razer Edge and Logitech G Cloud, a dedicated Microsoft handheld represents a major step. Jason Ronald, Microsoft's VP of Next Generation, hinted at further announcements later this year in an interview with The Verge, suggesting an official unveiling of the handheld console is likely. He emphasized Microsoft's strategy: integrating the strengths of Xbox and Windows for a unified experience. This addresses current shortcomings of Windows on handhelds, such as cumbersome navigation and troubleshooting, as demonstrated by devices like the ROG Ally X.

Microsoft's commitment extends beyond hardware. The company is actively working to optimize Windows for handheld gaming, focusing on improved functionality without a mouse and keyboard. Ronald specifically acknowledged the limitations of Windows' joystick compatibility, a crucial aspect for handheld PCs. Drawing inspiration from the Xbox console operating system, Microsoft seeks to create a more intuitive and consistent experience across all platforms. This aligns with Phil Spencer's vision of handheld PCs mirroring the Xbox experience, ensuring consistent gameplay regardless of the hardware.

This enhanced functionality could be a key differentiator for Microsoft. Whether this involves a redesigned portable OS or further refinements to its first-party handheld, it addresses existing issues. For example, the performance of titles like Halo on the Steam Deck highlights the need for optimization. Improving the handheld experience for flagship franchises like Halo would be a significant achievement for Microsoft. However, concrete details remain scarce, leaving fans eagerly awaiting further announcements later this year.