Xbox Handheld Looks to Compete with SteamOS

Microsoft's Xbox Strategy: A PC-First Approach to Handheld Gaming

Microsoft's VP of "Next Generation," Jason Ronald, recently outlined the company's ambitious plan to merge the best features of Xbox and Windows for PCs and handheld devices. This strategy, revealed at CES 2025, prioritizes a PC-centric approach before expanding to handhelds.

Ronald emphasized the goal of bringing Xbox innovations to the PC and handheld markets. He acknowledged that Windows currently lacks the optimal controller-friendly experience needed for handheld gaming, a challenge Microsoft aims to overcome by prioritizing the player and their game library. The foundation for this endeavor lies in the fact that the Xbox operating system is built upon Windows, allowing for a seamless integration of existing console infrastructure.

While details remain scarce, Ronald hinted at significant investments and future announcements regarding the Xbox handheld. The focus is on creating a distinct Xbox experience on PCs, moving beyond the current Windows desktop environment.

A Competitive Handheld Landscape

The handheld gaming market is rapidly evolving. Lenovo's unveiling of the SteamOS-powered Legion GO S highlights the growing interest in alternative operating systems for handheld devices. Meanwhile, rumors surrounding the Nintendo Switch 2 intensify anticipation for Nintendo's next-generation console.

Microsoft faces stiff competition from established players like Nintendo and the growing popularity of SteamOS. To remain competitive, Microsoft must accelerate its efforts to deliver a compelling Xbox handheld experience that leverages the strengths of both Xbox and Windows.