Microsoft’s long-rumoured portable Xbox project has reportedly been cancelled, and according to new leaks, the decision came down to one major hurdle — AMD’s minimum chip order requirement.
A post by well-known insider KeplerL2 on the NeoGAF forum claims that AMD demanded a minimum order of over 10 million units to justify allocating its R&D resources toward developing a custom SoC (system-on-chip) for Microsoft’s handheld console.
For Microsoft, that figure was simply too risky. Even successful handhelds like Valve’s Steam Deck, which launched in 2022, have only sold around 5 million units so far, while the ASUS ROG Ally has shipped just over 2 million. Betting on double those numbers for an untested device was deemed financially unwise.
The portable Xbox was first hinted at by Phil Spencer, who confirmed the company was exploring the handheld market amid growing demand sparked by the Steam Deck and ROG Ally. However, that plan appears to have shifted dramatically.
Instead of releasing its own console, Microsoft decided to partner with ASUS on the upcoming ROG Xbox Ally, a special edition of ASUS’s handheld launching this October. The collaboration includes software optimisations and Xbox app improvements designed for portable play — but this is not the same device as the scrapped in-house Xbox handheld.
The End of the Dream (for Now)
Sources suggest that AMD’s steep production threshold was the final nail in the coffin for Microsoft’s handheld ambitions. Given that the portable Xbox was never officially announced, it’s unlikely the company will comment publicly on its cancellation.
Still, the idea of an Xbox handheld continues to capture fan interest — and with the success of devices like the Steam Deck and Lenovo Legion Go, the possibility of Microsoft returning to the concept someday might not be entirely off the table.
