Only Microsoft Can Save Windows-Powered Handheld Game Consoles

Microsoft also requires some software to come bundled with their licenses, which is how you end up with the baffling inclusion of things like Microsoft Teams, Office 365—complete with Word, Excel, and PowerPoint—and [checks notes] … Microsoft Clipchamp … on a device that is, ostensibly, a gaming handheld. I know everyone has their preferences, but I feel pretty safe in assuming that 95 percent of the people who might be interested in the ROG Ally X aren’t interested in it for its middling video editing capabilities.

Hope on the Horizon

In late 2023, Microsoft introduced a preview of a version of its Xbox app called Compact Mode. It gives gaming handhelds running Windows a Steam Deck–like interface designed primarily for controller input, and there have already been some pretty substantial updates. Most notably, the Jump Back In feature lets players immediately launch their most recently played games.

On competing devices like the Steam Deck or the Switch, this feature is known as “just how the thing has always worked,” but it’s still a welcome addition. Even if apps like Asus’ Armoury Crate already do this. Also, at the moment, the Xbox app only lists games you purchased via Microsoft. Which means my Jump Back In consists of … Solitaire. Baby steps, I suppose.

There are rumors Microsoft might be working on a gaming handheld console, which, if true, would be great news since it means Microsoft is likely to keep optimizing Windows for the category. Simultaneously, it might be awful news for competing manufacturers if they’re not also allowed to benefit from that work.

Put more simply: If it comes down to an official Xbox gaming handheld that can run all Windows-based games with an interface comparable to the living room console versus a janky handheld with an interface glued together, it wouldn’t be hard to guess which one is more likely to succeed.

It seems unlikely it would come to that. Since Microsoft has thus far failed to compete in selling console hardware. The company has instead adopted an “Xbox everywhere” strategy. Where Nintendo and Sony sell boxes that run their games, Microsoft wants to make Xbox a platform where you can play games on every desktop, laptop, tablet, phone, and television you have.

I would argue that none of these are quite as important as getting gaming handhelds right. The Switch demonstrated just how much people want to take their games with them, and the Steam Deck showed that even some major AAA games can run well on portable hardware. If Microsoft wants Xbox to be everywhere, it might need to adopt the model Google uses for Android. Google makes and sells its own Android phone but allows competitors to build on its platform and, quite often, beat them at their own game. Google still benefits from its services running on competitors’ devices, so either way, Google comes out on top. A similar strategy could work for an Xbox handheld built on a platform of work that Microsoft shares with third parties.

Right now, Windows handhelds are struggling. Even the best options still drain more power, have jankier interfaces, and cost more than devices like the Switch or the Steam Deck. With every update that makes these devices moderately better, the impenetrable wall of Windows becomes more obvious. Until Microsoft steps up, it doesn’t seem like this status quo will change soon.