**Xbox Sidelines First-Party Handheld Plans, Focuses on Third-Party Support Instead**

In a pivotal move this week, Xbox has reportedly shelved its plans to develop a first-party handheld gaming device slated for release in 2027. Instead, the tech giant has decided to support third-party handhelds for the foreseeable future. This decision aligns with the broader strategic direction of Microsoft, emphasizing the enhancement of third-party devices.

Former Xbox executive and Blizzard president, Mike Ybarra, has publicly backed this decision, labeling it "100% the correct path" via social media. Ybarra expressed confusion over the initial idea of a first-party Xbox handheld, suggesting that it seemed more like an attempt to address a gap in hardware strategy rather than a necessity. He argued that with the current landscape flooded by multiple gaming devices and the rise of SteamOS on third-party hardware, developing an exclusive Xbox handheld didn't make much sense. Ybarra underscored the importance of focusing on developing exceptional games and fostering vibrant communities within them rather than diverting resources to new hardware initiatives.

In line with this approach, Xbox has apparently collaborated with ASUS to release a third-party handheld by 2025. This partnership underscores their commitment to enhancing third-party hardware support rather than investing in their own handheld device. Industry analysts like Jez Corden from Windows Central share Ybarra’s view, agreeing that sidelining the handheld project is a prudent decision. Corden highlighted that the formidable presence of SteamOS and its performance enhancements poses a significant challenge to Microsoft's Windows-based handheld ambitions.

Corden’s analysis concurs that the current usability and performance issues of Windows 11 on handheld devices necessitate substantial improvements, making SteamOS a considerable competitor. This strategic pivot by Xbox does not eliminate the possibility of a first-party handheld in the future, but for now, the focus remains on strengthening third-party collaborations and improving existing platforms.

Despite the postponement, Xbox remains interested in handheld gaming, leaving the door open for potential developments down the line. However, with the current roadmap and industry challenges, a first-party Xbox handheld debuting in 2027 appears increasingly improbable unless significant behind-the-scenes changes occur.

Through these strategic adjustments, Microsoft appears committed to enhancing the quality of its game offerings and the robustness of gaming communities, reflecting a dynamic and adaptive approach in an ever-evolving gaming landscape.