Xbox next-gen hardware shelved by Microsoft

As this console generation trudges on, many are eyeing the future and the next generation of hardware to debut.

None more so than the console developers themselves, who will be looking into chipsets, GPUs, and audience demand. This includes Microsoft who have been supposedly designing a handheld competitor.

Rumours have swirled and circulated for many months that Microsoft was hoping to rival the Nintendo Switch 2 and handheld PCs with their own hardware, but according to industry insider Jez Corden, that’s no longer the case.

Jez took to Twitter to say, “Xbox's handheld codenamed "Pembrooke" has been side-lined (for now), as Microsoft prioritizes Windows 11 PC gaming handheld optimization.”

While many of us were eagerly looking forward to an Xbox handheld bolstered by Xbox Game Pass, the company pivoting to support PC handhelds seems the better business choice.

After all, they wouldn’t need to worry about profits and design, when they can simply push their subscription service to other handhelds.

In recent years, and the past few months, Xbox has become more about the brand and the services it can offer, rather than a simple hardware home for games.

The Xbox marketing that pushes Xbox Game Pass to so many other platforms is evidence of that.

So, for now, a handheld must seem pointless to the company, who can continue turning a profit through subscription models, while they focus on the Xbox Series follow-up, which is apparently still on course.

Jez also noted, “The Xbox Series X successor is full steam ahead, though,” reassuring those looking forward to the next Xbox console.

It’s worth remembering this is also just a rumour, despite Corden’s credibility, and it’s worth taking any information like this with a pinch of salt.

However, as I said above, it makes better business sense not to compete with Nintendo and Valve when they can simply implement Game Pass on handhelds instead.