Microsoft’s Own Xbox Handheld Was Cancelled Because of AMD Wanting High Minimum Orders – Rumour

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Rumors of Microsoft creating its own Xbox handheld gaming device circulated before the company partnered with Asus to develop the ROG Ally and Ally X. Now, a new report suggests Microsoft stopped its internal handheld project because AMD demanded a large minimum order for its chips. According to industry insider KeplerL2, AMD required Microsoft to commit to purchasing over 10 million chip units.

Microsoft decided against creating its own handheld gaming device because of the large number of units it would have needed to order, a risk the company wasn’t willing to take. AMD, the chipmaker, required a substantial order to justify the costs of developing a custom processor for the device. According to sources, Microsoft reviewed sales numbers for existing handhelds – the Steam Deck at around 5 million units, and competitors like Asus and Lenovo selling only 1-2 million – and determined the market was too uncertain to proceed.

KeplerL2’s recent posts suggest Microsoft was planning a dedicated handheld gaming console, unlike devices like the Steam Deck which are essentially portable PCs. This comes as Sony is also reportedly developing its own handheld console, potentially timed to release with the next PlayStation generation.

Rumors surfaced that Microsoft scrapped plans for its own handheld Xbox just before announcing the ROG Xbox Ally, created in partnership with Asus. These reports began in May, suggesting Microsoft paused development of its device to instead concentrate on improving the handheld gaming experience within Windows 11. These improvements will be available when the ROG Xbox Ally launches later this month.

According to a follow-up report by Tom Warren of The Verge, Microsoft decided against creating its own handheld gaming device. Instead, the company chose to collaborate with existing hardware manufacturers who were already developing their own handheld gaming PCs.

Warren believes Microsoft will release new Xbox consoles, but he also predicts that several PC manufacturers, such as Asus, will create devices that function like next-generation Xbox consoles as well.

Microsoft may be developing a way to play Xbox games on Windows computers through emulation. Reportedly, a dedicated team is working on preserving older games, aiming to make titles from the original Xbox, Xbox 360, and Xbox One playable on today’s PCs.

You can find information about the ROG Xbox Ally and Xbox Ally X, which cost $599.99 and $999.99, respectively. There’s also been talk that the companies attempted to reduce the price of both devices.

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2025-10-06 13:41