It took a few years of dealing with poorly optimized handheld PCs, but Windows Central reports Microsoft may finally be working on an Xbox handheld. The company could announce an Xbox-branded portable device as early as this year,

Microsoft is prepping a new handheld version of its Xbox console that could be launched later this year. Meanwhile, plans are afoot to replace the existing Xbox Series S and X consoles in 2027.

The rumor of an Xbox handheld has been floating around for months, but up until now, not much was really known about Microsoft’s launch plans for the hardware. A new report suggests that Microsoft is looking to launch such a handheld in the latter half of 2025.