Microsoft has put the development of its Xbox handheld gaming console on hold.
The Redmond company is reportedly working on optimising Windows 11 for handheld consoles, so that it is on par with Valve's SteamOS, providing enhanced performance and battery efficiency.
Microsoft shifts focus to Windows 11
According to Windows Central report, Microsoft's internal Xbox handheld console has been shelved, which indicates that it might not arrive in 2027, alongside Microsoft's next-gen Xbox consoles.
The first-party handheld is not the same as other upcoming portable consoles like Asus' Project Kennan, which is anticipated to launch later this year.
Microsoft handheld consoles to get optimised
Microsoft aims to optimise Windows 11 to run on handheld consoles, which means that upcoming third-party handhelds could arrive with a more optimised version of Microsoft's desktop operating system.
SteamOS-powered devices won't be Microsoft's only concern, with the Nintendo Switch 2 launch.
The Japanese firm's handheld is confirmed to launch in select markets in June and will compete with existing portable consoles.
To note, Asus is likely to release its Project Kennan console later this year, according to a report.
The report indicates that the first-party handheld from Microsoft might have been capable of running Xbox games, and the company still plans to launch a native handheld.
However, it is unclear whether this device will make its launch in 2027 or 2028.
