Xbox's new console quietly cancelled as Microsoft takes different approach

Don’t you worry your pretty little head, Microsoft isn’t cancelling the Xbox Ally, but it does seem that the new handheld announced just a few days ago is actually a replacement for a console that was being worked on.

For months, the industry has speculated on the Xbox handheld, as Microsoft was seen meeting with partners to develop the tech needed to enter the portable space.

We all thought that Microsoft was designing and developing the handheld console itself, and it seems that was the original plan before it pivoted to working with ASUS on the Xbox Ally.

Sources have told The Verge that Microsoft initially had plans for a native Xbox handheld, but this has been officially scrapped as the company looks to partner with others.

It makes sense - the money Microsoft would have invested in developing the console can now be spent elsewhere, and pitching that Xbox games can be played anywhere is a big part of their marketing campaign.

However, many are wondering what the native console would have cost, because we’re all looking at the Xbox Ally and estimating it will fetch well over £500, perhaps even over £700.

The partnership between Xbox and ASUS will allow the former to merge the experiences of Windows and console to align, and they can do it from a software level.

It’s disappointing that we won’t ever see the native console, simply because it could have cost less, and featured a different design.

But this is all speculation, as we never got to see anything solid from Microsoft on this, and it's now set its chips down alongside ASUS.

There is still no announced price for the Xbox Ally, but it will be with players by Christmas 2025, so you’d better start saving those pennies if you want to get a pre-order in.