Microsoft reportedly wants to partner with a manufacturer to release an Xbox handheld system, putting Nintendo's Switch 2 and Valve's Steam Deck on notice here's all we knowTech12:28, 12 Mar 2025Ready for more Xbox consoles?(Image: Xbox)We're just weeks away from the Nintendo Switch 2 reveal on April 2, with the console's release date, launch line-up, and pricing expected to be confirmed after months, even years, of speculation, which only intensified after the January 2025 reveal video.While we know the console will have rivals like the Steam Deck, MSI Claw, and other handheld PCs, it appears Microsoft could be readying a shot across Nintendo's bow, too.Article continues belowAccording to a new report from Windows Central's Jez Corden, Microsoft could be working to partner with a handheld manufacturer to launch a portable Xbox as soon as this year.While Sony has launched the PlayStation 5 Pro in recent months, Microsoft has been quiet on the hardware front, though Corden has tipped Xbox to launch a new console in 2027, with a new handheld console bridging the gap.Phil Spencer is keen on an Xbox handheld(Image: Getty Images)Corden's report suggests Microsoft won't be launching its own handheld, but rather partnering with another company to develop an Xbox system players can take with them."It seems Microsoft is working with a PC gaming OEM (think ASUS, Lenovo, MSI, Razer, etc.) on an Xbox-branded gaming handheld, surprisingly slated for later in 2025 if plans are met," Corden explains."Codename Keenan," this gaming handheld will look unmistakably "Xbox" we're told, complete with an official Xbox guide button, and Xbox design sensibilities"He continued: "Given that this is a partner device, similar to Lenovo's SteamOS partnership with Valve, I expect this handheld to be more PC-oriented. It'll most likely run full Windows, putting the Microsoft Store and PC Game Pass front and centre, alongside the ability to install things like Steam."If you're worried about how Microsoft might slim titles down for a handheld, Corden has an answer to that, too."Thanks to the Xbox Series S, Microsoft already has a large amount of games that could be more easily ported to a handheld-type system, too.""The strong possibility that these future systems will remain backward compatible ensures that those of us who are digitally locked to the Xbox ecosystem will have a place to upgrade to in the future. Future Xbox games will likely be Windows-oriented, hopefully with "Xbox Play Anywhere" as a default licensing model."Xbox became the biggest video game publisher in the world in December thanks to its multiplatform strategy, leading some to speculate its days of making hardware are over. With this handheld ambition, and the potential for an Xbox console in 2027, it appears there's still fight in the green brand yet.For more on Xbox, be sure to check out our concerns about Microsoft using a new model to generate AI-built games.Article continues belowFor the latest breaking news and stories from across the globe from the Daily Star, sign up for our newsletters.