
Phil Spencer responded positively to the idea of a local gaming feature for a hypothetical Xbox handheld device. In an interview with IGN, he stated, "I think being able to play games locally is really important." This suggests that if an Xbox handheld were to be developed, it would likely have the capability to play games locally, similar to the Steam Deck or Nintendo Switch.

During the 2024 Xbox Games Showcase, Phil Spencer, the CEO of Microsoft Gaming, did not provide specific details about the future of Xbox hardware. However, he did express his excitement about the work the team is doing around different form factors and different ways to play. He emphasized that being able to play games locally is really important and hinted at more information about the platform being shared in the future. In a separate interview, Spencer mentioned that the Xbox hardware team is considering "different hardware form factors and things that [they] could go do" as it plans the future of Xbox hardware2.

In a recent interview with Polygon, Xbox head Phil Spencer spoke about what he wants Xbox's contribution to the handheld gaming market to look like6. While he didn't confirm the development of a handheld console, he did discuss the changes he wants to make to the Xbox platform in this space. The main features he emphasized that would make a handheld console "feel like an Xbox" include:
Access to all games with associated save files: Spencer wants all of a player's games to be available on the handheld device, along with their corresponding save files.
Unified software experience: He mentioned the desire for a handheld device to "feel like the dash of my Xbox," referring to the Xbox user interface. This would likely involve a consistent design, layout, and overall user experience between the handheld device and the Xbox console.
Cross-save functionality: Spencer highlighted the importance of being able to continue a game on the handheld device that was started on the console, and vice versa.
Social experience integration: He expressed the need for the handheld device to include the same social features found on the Xbox console, such as friends lists, messaging, and parties.
Booting into the Xbox app: Spencer mentioned the possibility of being able to boot the handheld device directly into the Xbox app, in full-screen but in a compact mode, to provide a seamless and integrated experience with the Xbox ecosystem.
Overall, Phil Spencer's vision for a handheld Xbox console seems to focus on providing a consistent, integrated, and seamless gaming experience across different devices, while also delivering the full functionality and features of the Xbox ecosystem to handheld users.