Microsoft Shifts Focus from Portable Xbox to Windows 11 Enhancements and Cloud Gaming

Microsoft Redirects Its Gaming Ambitions: From Portable Xbox to Windows 11 and Cloud Streaming

According to sources close to Windows Central, Microsoft has decided to “pause” development on its own portable gaming console—similar to Nintendo Switch or Steam Deck—that was initially planned for release in 2027. Instead, the tech giant is shifting its attention toward optimizing Windows 11 for portable devices created by third-party manufacturers.

Focus on Collaboration with Hardware Partners

Microsoft now aims to enhance the Windows 11 experience on devices from companies like Asus and Lenovo, rather than launching its own dedicated handheld console. The company’s strategic pivot involves working closely with these manufacturers to deliver high-performance portable gaming solutions that run Windows 11 seamlessly.

Upcoming Devices and Partnerships

The first of these collaborative devices is expected to be Project Kannan, developed by Asus, which will feature the latest Windows 11 optimized for gaming. According to industry insiders, this device could arrive as early as the end of 2025. During this transition period, several other portable devices from Microsoft’s partners are expected to hit the market, paving the way for future innovations.

Possible Release of a Portable Xbox in the Future

While the release of a dedicated portable Xbox remains uncertain, sources suggest that Microsoft may eventually launch a full-fledged portable console. However, no specific timeline has been announced yet, and the focus currently remains on integrating Windows 11 into portable hardware through partnerships.

Expanding Cloud Gaming Infrastructure

In addition to hardware changes, Microsoft is also investing heavily in cloud gaming technology. The company plans to introduce a new cloud-based streaming system to compete with Nvidia’s GeForce Now. Currently, Xbox Game Pass streaming relies on Nvidia’s software, but Microsoft is eager to develop its own solutions to provide a more integrated experience.

The Future of Gaming at Microsoft

Industry analysts believe that Microsoft sees streaming services and portable gaming devices as the future of the gaming industry. By focusing on cloud technology and strategic hardware collaborations, the company aims to stay ahead in a rapidly evolving market.

Next-Generation Xbox and New Console Concepts

Looking ahead, instead of a traditional Xbox Series X successor, Microsoft may release a compact PC-like device running Windows with a user-friendly interface optimized for TV use. This new device is expected to launch around 2027, offering a different approach to gaming hardware.

Nintendo’s New Release and Market Trends

Meanwhile, Nintendo’s latest console, the Switch 2, is scheduled to hit stores on June 5, with prices starting at approximately $550. Some popular games will see significant price hikes; for example, a cartridge of Mario Kart World might cost around $100, while digital versions could be priced at about $90. These changes reflect the ongoing shifts in the gaming hardware market and consumer expectations.

Alex "Pixel" Petrov

Gaming journalist & industry insider. Covers the latest game releases, updates, and behind-the-scenes dev stories. Knows every Easter egg, patch note, and upcoming title worth hyping. Always gaming, always analyzing.