Xbox Could Be Dominating the Handheld Console Market with a Single Feature

Handheld gaming has always carved a significant niche in the gaming landscape. While there were devices before it, the Game Boy by Nintendo truly revolutionized handheld gaming by providing near-NES-level gameplay experiences that you could enjoy anywhere. Nintendo kept pushing the boundaries with the various Game Boy models, and in 2006, it raised the bar even higher with the launch of the Nintendo DS. Playstation attempted to compete, but Xbox chose to steer clear of this market—until now, that is.

After much speculation and rumor milling, Xbox’s Phil Spencer finally confirmed to Bloomberg that Xbox is diving into the handheld gaming space. Spencer mentioned that it may take a few more years before we see this device available for purchase. Yet, the anticipation is already building, especially because there’s a standout feature in development that promises to distinguish it from anything else currently available.

The handheld gaming realm has never been this crowded. The Nintendo Switch, now in its seventh year, including its Lite and OLED versions, has surpassed 140 million units sold. Despite being technically outperformed by the previous generations of PlayStation and Xbox consoles, the Switch’s portable allure, iconic branding, and family-oriented appeal have kept it reigning supreme in the gaming industry.

In 2022, Valve decided to enter the fray with its very own handheld console. In just two years, the Steam Deck has quickly earned a reputation as one of the finest handheld devices around, capable of running some of the most graphically intense modern games with minimal fuss.

By the time Xbox finally releases its handheld, the landscape might look somewhat familiar. Nintendo plans to introduce a successor to the Switch soon, and Valve has confirmed a second-gen Steam Deck is in the works. Therefore, the competition Xbox will face may not be vastly different from what it would encounter today.

A Bloomberg article also hints that PlayStation is in the early phases of creating a new handheld console. If this is accurate, Xbox will certainly have tough rivals lined up when their device hits the shelves.

Crucially, a game-changer for the Xbox handheld could be Xbox Game Pass. Over the past year, Xbox has been on a mission to broaden its brand beyond the console itself, highlighting how various platforms, from PCs to mobiles, can also deliver Xbox experiences through the Xbox app.

When the Xbox handheld finally launches, Game Pass could well be its ace. Having Xbox Game Pass closely tied to the handheld’s appeal would be a formidable strategy, both immediately and in the long run.

Initially, gamers will instantly benefit from a colossal library of games at no extra cost, ranging across genres and styles—from AAA blockbusters to indie gems—allowing them to truly explore the handheld’s potential right from the start.

Looking ahead, Game Pass would ensure that users always have a fresh selection of games to enjoy. While a PlayStation handheld could leverage its PS Plus offerings, Game Pass has a distinct advantage by featuring new first-party titles from day one. This advantage is likely to expand, given Xbox’s integration with massive studios like Xbox Game Studios, Bethesda, and Activision-Blizzard.

For more thoughts and ideas, check out the “Xbox Handheld Console Wish List.”