It has long been considered an open secret that Microsoft is working on a portable Xbox, something that has been both rumoured and clearly hinted at by Xbox executives. Recently, however, there were reports that a portable (made by Asus) Xbox will be released as early as this year, and now this have supposedly made Microsoft reconsider their plans.
The reliable Windows Central editor Jez Corden writes that they will now instead invest resources in optimising the gaming aspects of Windows 11, thus ensuring that partner devices such as the aforementioned portable Asus hardware will work as well as possible. That doesn't mean they're giving up on their own console, though, even though work on the device is now paused, and the report states that "Microsoft is still deeply investing in developing its own Xbox gaming handheld technology in the future".
Presumably, Microsoft has been stressed by the reports that switching to Steam OS makes Windows-based portable devices work even better. Therefore, they now choose to act by optimising Windows 11 first and foremost, and there will be no layoffs as a result. Windows Central also emphasises that the "Xbox Series X successor is totally safe, with development continuing at full pace".
What do you think about this, is it the right priority to optimise Windows 11 for gaming first and let the third party developers launch portable Xbox devices, or should they look to bring out their own portable hardware?