That’s because the next-gen Xbox platform is being built in the open, with devices like the ROG Xbox Ally and Xbox Ally X. These handhelds seem like a market test for where Microsoft goes next with the combination of Windows and Xbox, and the company’s goal to turn any screen into an Xbox.

Microsoft's plans for a first party Xbox handheld have been cut short according to multiple sources, but new hardware is still on the table.

Microsoft has cancelled its own Xbox handheld project, shifting focus to the Asus ROG Ally lineup. While fans may be disappointed, Microsoft promises a more exciting portable gaming experience by partnering with Asus.