A new rumor suggests that Microsoft surprisingly halted the development of its own internal Xbox handheld project, with the blame reportedly falling on AMD’s doorstep. This revelation comes just weeks before the much-anticipated launch of the Asus-built ROG Xbox Ally. It’s now claimed that Microsoft was indeed considering creating its very own handheld gaming device, but these ambitions were allegedly thwarted because AMD insisted on a massive minimum order of 10 million custom CPUs.
Currently, most top-tier handheld gaming PCs, including the popular Steam Deck, rely on AMD processors, specifically customized APUs. AMD has largely cornered this market, and if this unconfirmed report holds true, it implies Microsoft simply couldn’t commit to the chip manufacturer’s substantial volume requirements for a bespoke CPU.
This intriguing, albeit unverified, information surfaced via KeplerL2, a well-known hardware tech leaker, in a discussion on the Neogaf forums regarding Microsoft’s broader hardware strategy. When asked about Microsoft’s personal handheld endeavors, KeplerL2 indicated that, to their knowledge, Microsoft withdrew from building an in-house handheld because “AMD wanted a commitment of 10m+ units to justify making a dedicated SoC.”
KeplerL2 further elaborated that considering the Steam Deck has only sold approximately 5 million units, and other competitors like Asus and Lenovo have moved around 1-2 million, Microsoft was understandably hesitant to gamble on such a monumental order.
It wouldn’t have been unprecedented for AMD to develop a custom APU for Microsoft, as they’ve done so for other handhelds and, of course, for Xbox consoles themselves. The Steam Deck, for instance, utilizes a custom AMD APU (codenamed Van Gogh) featuring four Zen 2 CPU cores and an RDNA 2 GPU. This design has even reportedly influenced the new AMD Ryzen Z2 A chip, originally tailor-made for Valve’s portable powerhouse.
While Microsoft never publicly confirmed its in-house handheld plans, the company clearly remained committed to the portable gaming market. Instead, they opted for an external partnership with Asus for an Xbox-branded handheld. Both the Asus ROG Xbox Ally and ROG Xbox Ally X are slated for an October 16 release. The standard ROG Xbox Ally features the AMD Ryzen Z2 A, while the more premium ROG Xbox Ally X boasts the powerful AMD Ryzen Z2 Extreme.
However, it’s crucial to approach this rumor with a healthy dose of skepticism. Jez Corden from Windows Central, a source with strong industry ties, countered this information on X (formerly Twitter), stating it “isn’t even slightly true.” Despite KeplerL2’s solid reputation for leaks, Corden’s opposing view adds a layer of doubt.
Regardless of the truth behind the canceled in-house project, Microsoft’s push into handheld gaming is undeniable. Our recent ROG Xbox Ally preview at Gamescom, combined with its promising specifications, fuels optimism that these new Xbox portables will become formidable contenders in the market, building on Asus’s strong track record. We eagerly await their launch to put them through their paces.
In the meantime, you can explore our comprehensive Asus ROG Ally X review for insights into Asus’s previous handheld offering. If you’re seeking a powerful yet portable setup, our guide to the best gaming laptops provides excellent options for every budget.
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