Former Microsoft leadership had formally approved a budget for a first-party Xbox handheld device. CEO Satya Nadella had previously signed off on the project, confirming it was a core part of the company's hardware roadmap under the prior management team.

Journalist Jez Corden reported that the original plan prioritized the next-generation console project, codenamed Helix. The handheld device was intended to follow the console launch, rather than precede it as some rumors suggested.

Following a change in leadership, the current status of the hardware strategy remains uncertain. Corden noted that the project could face delays or outright cancellation as the company reevaluates its long-term goals.

Recent reports suggest a potential shift in strategy toward a collaborative model rather than an entirely in-house development. One possibility involves a partnership with ASUS, potentially utilizing upcoming AMD processor technology for the device.