For the past few weeks, Xbox has said they are developing new hardware. It is rumored to be developed by the surface team and is said to be a handheld or hybrid console device. Phil Spencer is calling for the Steam and Epic store to come to the Xbox, which sets off red flags.

First, coming out with a handheld or hybrid console is a very bad decision. Nintendo own that market and outside of the Switch, the market is very niche. There’s the Steam Deck and ASUS ROG, but no one is buying these like that. An MS handheld would be just another handheld system in that market. The next big thing MS should be worried about is if Sony re-enters the portable console market. That would make that market even smaller, look:

My question is how are you going to sell this? You want to go third party, but come out with a new console. Putting games everywhere else gives no reason to invest into the system. Its literally just another system like the others in that small market, with just an Xbox logo on it. Thats not even mentioning the lack of quality in Xbox games. Another thing is the Switch 2 is coming out soon and they may want to stay clear of it.

It looks to me this is going to be the scenario down the line.. MS is going to unveil this handheld console, and it will be marketed as console gaming in the hand. They’ll then use their influencers to hype it up and launch it with no games. When it comes out in this market and fails to sell anything close to the Switch, MS is going to repeat that the game market is getting smaller. Then a few years after, the Xbox name will be retired and Steam and Epic will be where you go to get your games on Surface devices. MS will continue making games as a third party. They’ll later say that they stopped making consoles because no one bought them. It allows you get out of the console business and gives you a reason for doing it.

At one point, a handheld could have been a cool move for Xbox. This was back in the late 2000s and the idea of having a Halo or Gears of War game on the go sounded amazing. The cool thing about having big franchises on PSP or Vita was not the idea of playing a scaled down console port. It was these games keep the DNA of the console game yet used the features unique to the handheld, making it feel like (insert title) in the palm of your hand. MGS: Peace Walker, Little Big Planet, Resistance Retribution, Killzone Mercenary, and Crisis Core for example. Not all translated the best to handheld, but there were a lot of good ones.