Xbox reportedly targets 2027 for a new gaming handheld

Xbox is reportedly aiming to release a new handheld by the 2027 holiday season.

The plan comes from a profile of CEO Asha Sharma and could mean a successor to the Asus-made Xbox Ally X. Microsoft’s Xbox and Windows teams disagree over the handheld’s operating system.

Xbox wants software optimized for gaming, while the Windows team wants to base it on Windows Home.

Xbox is now largely directing the operating system’s development, though Sharma said the teams are still working together.

The current Ally X runs a gaming interface on top of Windows, which has been described as less streamlined and as a drawback for performance.

The operating-system choice matters because it could affect how well the handheld plays games.

The next Xbox home console is reportedly planned for the 2028 holiday season, but it is unclear whether it is part of the same Project Helix family of devices.