Microsoft is entering the handheld gaming market with a new fullscreen Xbox interface tailored for portable devices. Designed to challenge the Steam Deck and upcoming Nintendo Switch 2, this move signals a serious push into portable gaming.
Microsoft Takes on Steam Deck and Switch 2 With New Fullscreen Xbox Handheld Experience
In a bold move, Microsoft has revealed a fullscreen Xbox experience designed specifically for handheld gaming devices—marking a renewed push into the portable console space. This development is poised to take on established players like Valve’s Steam Deck and the anticipated Nintendo Switch 2, offering a new way to access Xbox Game Pass and cloud gaming on the go.
The new interface is optimized for small screens and touch controls, featuring a sleek and immersive UI that resembles a traditional console dashboard but with tweaks to suit portable gameplay. It promises seamless access to Game Pass titles, quick resume, cloud saves, and performance monitoring—all tailored for handheld performance.
What’s New in Microsoft’s Handheld Xbox Mode?
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Fullscreen dashboard experience for portable devices
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Quick launch and resume for Game Pass titles
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Native support for touch, controllers, and compact displays
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Optimized UI for smaller screens (7–8 inches)
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Cloud integration with Xbox Cloud Gaming (xCloud)
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Designed to work with handheld PCs (like ASUS ROG Ally, Lenovo Legion Go)
Taking on Steam Deck and Switch 2
With Valve’s Steam Deck gaining popularity and Nintendo expected to launch the Switch 2 later in 2025, Microsoft’s move comes at a pivotal time. Rather than creating its own hardware—at least for now—Microsoft is leveraging its ecosystem and Xbox Game Pass as a platform play across multiple OEM devices.
The new experience will initially be rolled out to Windows-based handhelds like the ASUS ROG Ally, Ayaneo, and Lenovo Legion Go, transforming them into full-fledged Xbox portable consoles.
Microsoft is also reportedly exploring partnerships with third-party hardware manufacturers to develop officially branded Xbox handhelds, potentially putting them in direct competition with Nintendo and Valve’s devices.
Microsoft’s Strategy: Cloud + Compatibility
Unlike Steam Deck’s Linux-based system or the rumored proprietary setup for Switch 2, Microsoft’s approach focuses on Windows compatibility, leveraging the existing PC ecosystem. The fullscreen Xbox mode acts as a launcher/interface, simplifying the sometimes clunky Windows UI on small-screen handhelds.
This strategy lowers the barrier for developers and users while enhancing the Xbox brand’s reach across form factors.
