The news just dropped at Bloomberg, signed by the ever-reliable Mark Gurman. Microsoft is no longer content to watch Valve dominate the PC handheld market: Redmond is prepping its own portable, in partnership with ASUS. Target window: Q4 2026. And the spec sheet is already turning heads.
The essentials: Xbox + ASUS handheld, Q4 2026, AMD Z2 Extreme SoC, 24 GB RAM, 7″ 120Hz OLED. Target price: under 600 euros, Premium edition at 799 euros. Direct rival to the Steam Deck 2.
The technical details
This is no budget Steam Deck. Microsoft is clearly aiming at the premium tier.
- AMD Z2 Extreme SoC, latest-generation chip for handhelds.
- 24 GB of RAM, double the original Steam Deck target.
- 7″ 120Hz OLED screen, a premium panel matching the Steam Deck OLED.
- Lightweight Windows 11 with a dedicated Xbox overlay for quick Game Pass access.
What it changes
Microsoft is betting on Game Pass + Cloud Gaming integration as its key differentiator. The console could boot straight into the Xbox overlay, bypassing the traditional Windows experience. For users frustrated by SteamOS gaps on some recent titles, this could be the deciding argument.
Price is the real unknown
Two SKUs are floated: a standard under 600 euros, and a Premium at 799 euros. The gap likely covers storage and an optional dock. At that level, Microsoft is going head-to-head with the Steam Deck 2 OLED.
“The window is narrow: if Microsoft misses Q4 2026, Valve locks the market for five years.” — analyst quoted by Bloomberg.
What to watch
Three big unknowns remain: real-world battery life with an Extreme SoC, compatibility with the Xbox console library, and the device’s weight. Microsoft is expected to make it official at E3 2026 or during the next Xbox Games Showcase.
Also on HIK Gaming: our 25 must-tweak Steam Deck 2 settings, Steam’s 40 million record and the Elden Ring 2 announcement.