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 the handheld market.

Ronald emphasized Microsoft's intention to leverage its console innovations and integrate them into the PC and handheld gaming ecosystems. This involves bringing the familiar Xbox experience to Windows, focusing on a user-centric design that prioritizes the player's game library and controller-friendly controls. Currently, Windows's handheld experience lags behind competitors like the Nintendo Switch and Steam Deck, lacking the necessary controller optimization and broader device support.

Despite the challenges, Ronald expressed confidence in Microsoft's ability to deliver a premium gaming experience across devices, leveraging the existing infrastructure of the Xbox operating system, which is built upon Windows. While specifics remain scarce, he hinted at significant investments and further announcements later in the year, promising a shift away from the traditional Windows desktop experience towards a more console-like interface.

The Competitive Handheld Landscape

Microsoft's evolving strategy arrives amidst a burgeoning handheld gaming market. Lenovo's recent launch of the SteamOS-powered Legion GO S highlights the growing adoption of SteamOS beyond the Steam Deck. Furthermore, rumors of a Nintendo Switch 2, teased by accessory maker Genki, suggest intensified competition. Microsoft will need to accelerate its development to remain competitive in this rapidly evolving space.