A new Xbox Handheld is rumored to be in the works

Microsoft and Xbox analyst Jez Corden claimed during a podcast that a new Xbox handheld is in the works.

During a live stream via Xbox Two podcast, Corden insinuated that the Xbox division has “handheld prototypes.” He added that these are “new prototypes” and not the old prototypes often rumored. Corden also clarified that the device is “not a cloud handheld,” but a “fully native Xbox handheld.”

It’s still unclear whether this handheld is related to Microsoft’s upcoming next-gen Xbox console. Plans on the console were leaked during the FTC vs Microsoft trial last year. Another rumor suggests it could be a hybrid gaming device similar to the Nintendo Switch.

If Microsoft’s Xbox handheld is real and meant to launch sooner than the next generation, it will be facing an uphill battle in the revitalized handheld market. The Nintendo Switch currently leads the market with over 100 million copies sold since launching in 2017.

Joining the fray is Sony’s new PlayStation Portal, though its primary function is that of a peripheral to the PlayStation 5. Also, there is the Steam Deck and ROG Ally; both geared towards PC gaming on the go.