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Scan for outdated or missing drivers - takes under a minuteDriver Scan →Clear out junk files and repair common Windows errorsFree Scan →Fix the driver behind crashes, sound loss and screen glitchesFind Drivers →In a March 2024 interview at the Game Developers Conference, Phil Spencer discussed PC gaming handhelds such as Steam Deck and ASUS ROG Ally, criticizing parts of the Windows and Xbox app experience—not announcing an Xbox handheld. He also spoke about the financial pressure of making large games and Microsoft Gaming’s obligation to run a profitable, growing business.
What did Spencer say about gaming handhelds?
Polygon interviewed Spencer at GDC about the growing market for PC gaming handhelds. In Laurent Giret’s March 26, 2024 Thurrott account of that interview, Spencer was described as traveling with a Lenovo Legion Go and discussing devices including Valve’s Steam Deck and ASUS ROG Ally. He praised companies for exploring the form factor while distinguishing hardware from the software frustrations he encountered.
“I like the fact that Valve, Lenovo, and Asus went out and innovated in a new form factor. And I will say that when I’m playing on those devices, it almost feels more like a console than a PC — nine times out of 10. The things that usually frustrate me are more Windows-based than device-based. Which is an area I feel some ownership of. Like, I want to be able to log in with a controller. I’ve got my list of things we should go do.”
Those words are quoted from Thurrott’s report, which summarized the Polygon interview; they should not be read as a separately verified transcript. Spencer’s point was that handhelds could feel console-like during play, but Windows and the Xbox app still made the overall experience less seamless than he wanted. Controller-based sign-in was one concrete usability improvement he mentioned.
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Why did he criticize Windows and the Xbox app experience?
Windows handhelds combine a PC operating system and its flexibility with a compact, controller-first device. That can make navigation and routine tasks feel less tailored to a console than playing a game itself. Spencer said Windows was not optimized for these form factors and described the Xbox app experience on handhelds as unsatisfactory in the Thurrott account.
His remarks were about improving Xbox software on devices already on the market, not about a completed Microsoft hardware design. Earlier context came in a December 2023 Windows Central interview report, where Spencer called handheld PCs “almost extensions of my Xbox console.” He emphasized cross-device saved progress and the ability to play games natively offline, rather than relying only on streaming. Xbox Play Anywhere and carrying a library across devices were part of that broader idea.
Did Phil Spencer announce an Xbox handheld?
No. The March 2024 discussion was about existing Windows handhelds and the Xbox experience on them; it did not announce a Microsoft portable device or a release plan.
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Spencer spoke more explicitly in favor of the idea in June 2024 at IGN Live: “I think we should have a handheld, too.” He also said, “I think being able to play games locally is really important.” Ars Technica characterized those comments as short of an official announcement that Microsoft was actively developing portable hardware. GameSpot reported in January 2025 that Spencer was still discussing handhelds without confirming a dedicated Microsoft portable device.
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What did Spencer say about the state of the games industry?
Thurrott’s account set the GDC conversation against pressures on Microsoft’s gaming business in early 2024. It referenced 1,900 gaming-division job cuts announced earlier that year, Xbox’s decision to bring four formerly exclusive games to other consoles, and pressure in the console market. Those are historical context for the interview, not new developments or evidence that one factor caused a particular layoff, cancellation, or strategy decision.
On the economics of game development, Spencer put the business obligation plainly:
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“We’re a business. I’ve said over and over. I don’t get any luxury of not having to run a profitable growing business inside of Microsoft. And we are that today.”
The implication is a tension between the expense and scale of large-budget projects and the need for a sustainable business. Spencer’s comments do not establish that this interview alone explains a specific change in Xbox’s plans; they describe the commercial constraint he said Microsoft Gaming faced.
How did Xbox’s later handheld work develop?
Later official Xbox podcast discussion covered the ROG Xbox Ally and Xbox’s partnership with ASUS. Spencer described work to make a Windows device feel more appliance-like and console-oriented while retaining Windows’ openness. The conversation also acknowledged areas that still needed work, including battery life, interruptions, and performance. This later context reflects continuing effort around portable Xbox play, but it should not be retroactively treated as an announcement made in the March 2024 interview.
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