Xbox’s rumored handheld console isreportedly on hold, asMicrosoftfocuses on making improvements to Windows 11 and supporting Project Kennan, a similar device on which it has partnered with ASUS. That doesn’t mean that the Xbox handheld has been cancelled, but itlikely won’t launch in 2025 as originally rumored.

If it’s true that the handheld has been pushed back, it looks like Xbox could have two console launch years in a row, with the handheld arriving in 2026 and itsnext-gen home console coming in 2027. That kinda seems like too much, too quick, but I have an easy solution: cancel the home console altogether.

Xbox’s Trajectory Is Leading Out Of The Console Game

At this point, it almost seems strange that Xbox is still planning to launch a next-gen console. It has been roundly defeated byPlayStationin the PS5-era and the PS4-era, and theSwitch’s generation-straddling life cycle means it handily beat Xbox twice with a single console. Xbox seems to know that it can’t compete like it used to, but has been on a weird arc for the last few years as it tries to forge a new path. It went from having no games in the Xbox One and earlySeries X|Syears, to having a whole lot of games, but not keeping any of them for itself.

Doom: The Dark Ageswas arguably the biggest Xbox release of the year so far, but it’s also on PS5.Oblivion Remastered, Doom’s main competition for the crown, is also on PS5. Xbox brought two games that were previously big exclusives,Indiana Jones and the Great CircleandForza Horizon5, to PS5 this year, too. The biggest games that are actually Xbox exclusives in 2025?South of Midnight, a decidedly double-A outing, and Obsidian Entertainment’sAvowed, a genuinely big triple-A release. But, given that Obsidian’s last two games,GroundedandPentiment, recently went multiplatform and its next game,The Outer Worlds 2, will be multiplatform from the start, it strains credulity to think that Avowed won’t move to PS5 sooner rather than later.

Senua’s Saga: Hellblade 2, previously a big Xbox exclusive, isalso getting a PS5 release soon.

All of that makes me, and many other consumers, indifferent to the Xbox Series X|S. Why do I need to buy an Xbox console if I’ll be able to play all the games it offers on my PS5 without too much of a wait? Indiana Jones pushed me to consider buying a Series X, but I waited a few months, and ended up completely fine without needing to buy another console. It feels like Xbox is giving PS5 players everything they could want.

The Handheld Market Could Be Friendlier To Xbox

A handheld is a different proposition entirely, especially because there isn’t currently one on the market that specifically targets console players while offering the ability to natively play new triple-A games. Sony’s answer, thePlayStation Portal, requires a PS5anda stable Wi-Fi connection. It’s an accessory for existing PS5 owners, not a serious alternative.

Not to mention that Xbox’s Cloud Gaming tech could provide its handheld with the same functionality in addition to running games natively.

TheSwitch 2, meanwhile, is a significantly beefed-up handheld, but will only have select third-party triple-A games.Borderlands 4, The Duskbloods, Cyberpunk 2077, and Split Fictionare a great start, but the console being weaker than other current-gen offerings means that ports will be a case-by-case basis. Given Xbox’s all-in-one approach to its ecosystem, though, handheld owners would likely be able to play the entire Xbox library from day one.

The best handheld machines, like the Steam Deck and Asus ROG Ally, are aimed at PC players, and that’s a different audience. The Asus ROG Ally is a great handheld, but it doesn’t have the same name recognition with console players that Xbox does. The Steam Deck, like the PlayStation Portal, is most valuable if you’re already in the ecosystem, and want toplay all the PC games you already own. But the Xbox handheld would have the benefit of its Game Pass subscription service, allowing new players to immediately gain access to a huge library of new and old games.

If Xbox can keep the price fairly low, it has a real shot at carving out a path for itself in the handheld space. It still might not be competitive, but a next-gen Xbox home console absolutely won’t have a shot against PlayStation and Nintendo. It’s too late, it’s lost too much ground. Xbox should pivot hard to handheld while it has the chance.