Some new details have emerged about Microsoft’s first official gaming handheld, and it seems Microsoft is making safer choices for now.

As reported by Jez Corden for Windows Central, this isn’t quite an Xbox handheld that runs a version of Xbox OS quite yet. Instead, ASUS is making a partner Xbox device, that’s redesigned to better fit in line with Xbox’s branding and design philosophy.
Subsequently, it will still be a Windows PC in gaming handheld form. This does mean not all Xbox games will play on the handheld. Instead, games that are enrolled in the Xbox Play Anywhere program will be the only games that will be available. Subsequently, you will also be able to stream games from your Xbox library using Xbox Cloud Streaming.
On the flip side, because Windows is the most popular open gaming platform, you will be able to run a variety of games and game clients. You will still be able to use the Windows clients for Steam, Battle.net, Ubisoft Connect, HoYoverse, Riot Games, etc. Subsequently, you can also download and install standalone versions of games, such as those you can download DRM-free on GOG.com. You can also download the versions of Unreal Tournament and Unreal Gold that Epic has allowed to be available on the Internet Archive.
In terms of price, Corden heard that they are considering a price range between $ 499 to $ 599. However, that could have definitely changed given the current instability in the US economy, and subsequently, the endemic video game industry. Corden doesn’t know the rest, but he speculates that it will use AMD’s Z2 chip, and that the upcoming Microsoft Build event this May would be a good opportunity for the reveal.
Corden also doesn’t have any source confirming that Microsoft will make an Xbox handheld that runs Xbox games down the line. He does believe it is an inevitability, because certain licensing agreements mean that some Xbox games can only be played on Xbox, and not Windows. If Corden’s hypothesis is true, then it’s likely that this ASUS Xbox handheld is something of a test run or soft launch for Xbox in portable gaming.
Objectively speaking, Microsoft chose a trusted OEM partner they have already worked with, and using proverbial off-the-shelf parts with things like Windows OS. So they haven’t fully invested in a dedicated portable Xbox gaming experience, and that would be just fine. Even with as cheap as the Steam Deck and their Windows counterparts are, PC handheld gaming is still a niche. Microsoft joining that niche will help grow that market, and also teach them things that they can then take when they do make a dedicated Xbox handheld down the line. Depending on how it works out, they may also decide if it would even be worthwhile to invest in such a device.