A recent rumor has emerged suggesting that Microsoft has halted the development of its own in-house Xbox handheld, a decision reportedly influenced by AMD’s demands. As anticipation builds for the upcoming Asus-built ROG Xbox Ally, speculation has surfaced that Microsoft had initially considered creating a handheld device internally. However, this plan was allegedly scrapped due to AMD’s requirement for a substantial order of 10 million CPUs before proceeding.
AMD’s Influence on Microsoft’s Handheld Aspirations
Currently, many devices featured in our best handheld guide are powered by AMD processors, including the popular Steam Deck, which utilizes a custom CPU. AMD has established a stronghold in the handheld gaming PC market with its dedicated APUs. If the rumors hold any weight, it suggests that Microsoft was unable to meet AMD’s expectations for a custom CPU.
This unconfirmed information was shared by the well-known hardware leaker KeplerL2 on the Neogaf forums, where discussions about Microsoft’s hardware strategy took place. In response to inquiries regarding Microsoft’s handheld ambitions, KeplerL2 indicated that the company decided against pursuing an in-house handheld due to AMD’s stipulation of a commitment to “10m+ units to justify making a dedicated SoC.”
KeplerL2 further noted that the Steam Deck has sold approximately 5 million units, while other handhelds from Asus and Lenovo have only reached sales figures of 1 to 2 million. Consequently, Microsoft appeared reluctant to take the risk associated with such a large order.
While AMD has previously developed custom APUs for handheld devices, this would not have been an unusual request, particularly for a company like Microsoft that relies on custom AMD chips for its Xbox consoles. The Steam Deck, for instance, features a custom AMD APU with four Zen 2 CPU cores and an RDNA 2 GPU, codenamed Van Gogh. This design has reportedly influenced the new AMD Ryzen Z2 A, specifically tailored for the Steam Deck.
Although Microsoft never officially confirmed plans for an in-house Xbox handheld, it has opted to collaborate with Asus for an Xbox-branded handheld instead. The ROG Xbox Ally and ROG Xbox Ally X are scheduled for release on October 16, with the base model utilizing the aforementioned AMD Ryzen Z2 A, while the ROG Xbox Ally X boasts the more robust AMD Ryzen Z2 Extreme.
However, it is advisable to approach this information with caution. Jez Corden from Windows Central has expressed skepticism regarding the validity of these claims, stating that they “aren’t even slightly true.” While KeplerL2 has a solid track record for rumors and leaks, Corden’s industry connections lend credibility to his perspective as well.
Regardless of the veracity of these rumors, it is intriguing to consider that Microsoft may have explored the option of developing a handheld device. Although that endeavor did not materialize, it has not deterred the company’s commitment to handheld gaming. Our recent preview of the ROG Xbox Ally at Gamescom, along with its specifications, has generated optimism that these two new Xbox portables will make a significant impact in the market, especially given Asus’ history of successful releases.
In the meantime, readers can check out our review of the Asus ROG Ally X for insights on the latest Asus handheld. For those seeking a larger yet still portable gaming rig, our best gaming laptop guide offers a variety of options to fit any budget.
Are you looking forward to trying out the new ROG Xbox Ally upon its launch? Join the conversation and share your thoughts on the new Xbox handhelds in our community Discord server today.
