Microsoft Shelves Xbox Portable, Bets on Ecosystem
Shift Signals Focus on Software and Partner Devices
Microsoft has reportedly abandoned plans for a dedicated portable Xbox console, opting instead to expand its gaming ecosystem through software and collaborations with hardware manufacturers. This strategic pivot prioritizes flexibility and broader reach over a proprietary handheld device.
Project Cancellation Confirmed
Weeks of speculation have ended with confirmation that Microsoft’s portable console project is “essentially canceled”
, according to industry journalist Tom Warren. The company’s priorities have shifted towards a more adaptable approach to gaming across multiple platforms.
Instead of competing directly with established handhelds like the Nintendo Switch, Microsoft now appears intent on empowering partners to create Xbox-branded devices. The Asus ROG Ally, showcased at Xbox Games Showcase 2025, exemplifies this strategy, offering an Xbox experience on a Windows-based portable.
“The Redmond Colossus would actually seem more interested in improving the flexibility of the Xbox ecosystem, by allowing material partners like Asus to create official Xbox license consoles, rather than investing in the production of a owner apparatus.”
—Tom Warren, Journalist
This move aligns with a growing trend in the gaming industry. A recent report by Newzoo indicates that mobile gaming revenue is projected to reach $167.4 billion in 2025, representing a significant portion of the overall gaming market. (Newzoo, 2024)
Evolving Xbox Vision
Microsoft envisions the “Xbox console”
evolving into a multiplatform software experience, seamlessly integrating PC and portable gaming. This doesn’t mean the company is abandoning traditional consoles; the next-generation living room Xbox remains under development, with an anticipated release no earlier than 2027.
The company has yet to issue an official statement regarding the portable console’s cancellation, but the direction is clear: a more open and flexible Xbox ecosystem, prioritizing software and partnerships over exclusive hardware.
This strategy could allow Microsoft to reach a wider audience and adapt more quickly to the evolving landscape of the gaming industry, while still maintaining a presence in the traditional console market.