Microsoft Gaming CEO Phil Spencer said last year that there was no need for an Xbox handheld in the market, owing to devices such as the Steam Deck.

From the Nintendo Switch and the Steam Deck to the many similar devices the latter in particular has spawned (including the likes of the Lenovo Legion Go, ROG Ally, and more), there’s been no shortage of evidence that there’s incredible demand within the gaming audiences for handheld devices. Interestingly, it seems like Microsoft is at least tinkering with the idea of such a device.

That’s as per journalist Jez Corden, who said on a recent episode of the Xbox Two podcast that Microsoft is prototyping an Xbox handheld that’s a fully native device rather than being reliant on cloud streaming. Corden clarified that the prototypes in question are new, before clarifying that devices that are being prototyped don’t necessarily always end up releasing as purchasable products.

Interestingly, back in August last year, Microsoft Gaming CEO Phil Spencer stated that he felt there was no need for a dedicated Xbox handheld, owing to the existence of the likes of the Steam Deck and ROG Ally, both of which are capable of playing Xbox titles. Upon being asked about the possibility of an Xbox handheld again last month, Spencer said that there was “nothing to announce”.

Earlier this year, Xbox president Sarah Bond also teased “exciting stuff coming out in hardware that we’re going to share this holiday”.