Once upon a time (before smartphones), handheld gaming was incredibly popular. Nintendo dominated the space, but there wasn't any lack of competitors, and Sony had a really good run with PSP.
Many people wondered why Microsoft didn't have a portable unit, and the company has revealed that there once was internal talks about it, which obviously never ended up as a real product. But recently, handheld gaming seems to be bouncing back. Switch is a lot more popular than Nintendo 3DS, Valve has their upcoming Steam Deck, Razer/Qualcomm announced a Snapdragon based portable beast and there are plenty of portable retro units making the rounds as well.
And if the Windows Central editor Jez Corden is to be believed, which he often is when it comes to Microsoft's doings, Microsoft has now started to think about their very own first portable gaming unit as he claims that they have "been dabbling with Xbox handheld prototypes for some time now". Considering how much Microsoft has been pushing for Xbox Cloud Gaming, it wouldn't be too far-fetched to think that they would like to have their very own portable unit for this specific purpose.
This is only a rumour for now, but Corden has been know to be right about these things before, so we would say there is hope.