Hardware leaker claims Microsoft cancelled first-party Xbox handheld

Prior to the official announcement of the ROG Xbox Ally, leakers claimed that Microsoft was working on an internally-developed Xbox handheld alongside a partnered device. While the partnered handheld has of course come to pass, it was reported that the internally-developed Xbox portable was cancelled. Though not officially confirmed, it appears as though Microsoft’s inability to guarantee 10 million hardware sales was the reason for its ceasing.

Following recent statements in which Microsoft reaffirmed their commitment to future Xbox hardware, known industry insider KeplerL2 claimed that their internally-developed first-party handheld was sidelined (and later cancelled) due to chip maker AMD requiring a minimum guarantee of 10 million units, writing:

“The handheld was cancelled because AMD wanted a commitment of 10m+ units to justify making a dedicated SoC, but with Steam Deck only selling ~5 million units and ASUS ROG/Lenovo Legion only selling 1-2 million [Microsoft] didn't want to take the risk.”

Of course, given how Microsoft themselves did not even publicly announce the handheld (let alone cancel it), this should be taken with a pinch of salt.

That said, considering the fact that the last official figures put Microsoft’s primary Series X|S consoles at 21 million units (as of mid-2023), it perhaps makes sense that Microsoft opted for the far less risky approach.

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KitGuru says: Were you looking forward to Xbox’s first-party handheld? Will you make do with the ROG Xbox Ally? Do you reckon Microsoft could have sold 10 million units? Let us know down below.

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