A recent leak indicates that Microsoft scrapped plans for its first-party Xbox handheld because AMD insisted on a commitment to produce 10 million units. Despite ongoing challenges in hardware sales within the industry, Microsoft remains competitive in the console realm, focusing more on software and services. Previously, the company collaborated with ASUS to launch a handheld device, but reports suggest that an in-house alternative was once in consideration.

Xbox Handheld

AMD Reportedly Wanted 10 Million Units to Make SoCs for Microsoft’s Handheld
Leaker KeplerL2 shared insights on the cancellation of the project on NeoGAF, revealing that AMD required a minimum production run of 10 million units to agree to develop the necessary SoCs. Initially, the cancellation was interpreted as Microsoft shifting its strategy towards software and partnerships. However, it appears that the inability to meet AMD’s unit demand was a critical reason for abandoning the project.

ROG Xbox Ally X

While Microsoft may not have succeeded with its standalone handheld, it hasn’t completely turned its back on creating hardware. Contrary to rumors, the company has stated its commitment to investing in future first-party consoles, reassuring fans that work is ongoing despite the past setbacks.