Xbox on Switch 2
Image: Nintendo Life

Microsoft's gaming division Xbox was reportedly planning to go all-in on handheld gaming with not only a third-party device expected this year but also a first-party product supposedly targeting 2027.

Ahead of the Switch 2 launch next week, the tech giant's plans have apparently changed. In an exclusive from Windows Central, Microsoft's priorities are said to be "moving more deeply towards third-party OEM handhelds" right now.

The same story claims Microsoft is still "deeply investing in developing its own Xbox gaming handheld technology in the future". The Xbox Series X console successor is also believed to be "totally safe", with development continuing at full pace.

"Our sources have indicated to us that Microsoft is still deeply investing in developing its own Xbox gaming handheld technology in the future, but it was announced internally today that the priorities are moving more deeply towards third-party OEM handhelds in the interim."

Since the arrival of the Switch in 2017, gaming handhelds have continued to grow in popularity - with companies like Valve, Lenovo and ASUS (the team behind the Xbox third-party handheld) offering more options.

Following the Activision Blizzard acquisition, Xbox has also made a serious push as a software publisher and the company is now bringing major first-party IP to PlayStation and Nintendo platforms. According to a previous deal, this includes Call of Duty on Nintendo's platforms going forward.

If we hear about any other significant developments regarding Xbox's handheld plans, we'll let you know.

[source windowscentral.com]