Open the Windows

Six ways Microsoft’s portable Xbox could be a Steam Deck killer

It needs to be more than just stock Windows with a coat of paint.

Kyle Orland – Mar 11, 2025 6:45 PM | 162

It probably won't look exactly like this, but could you imagine if it did? Credit: Aurich Lawson

The long-running rumors and hints that Microsoft is planning to enter the portable gaming market accelerated forward this week. That's thanks to a Windows Central report that Microsoft is planning to partner with a "PC gaming OEM" for "an Xbox-branded gaming handheld" to be released later this year. The device, code-named Keenan, will reportedly feature "Xbox design sensibilities," such as the branded Xbox guide button, but will almost certainly be a PC gaming device running Windows at its core.

Any Microsoft entry into the world of gaming handhelds will join a market that has become quite crowded in the wake of the Steam Deck's success. To make its own portable gaming effort stand apart, Microsoft will have to bring something unique to the table. Here are some of the features we're hoping will let Microsoft do just that.

A bespoke user interface

There's never been a better time to bring back the old Xbox 360 "blades" interface. Credit: Microsoft / Reddit

For decades, Windows has been designed first and foremost for the world of large monitors driven by a mouse and keyboard world. When hardware makers try to simply stick that OS into a handheld screen size controlled by buttons and analog sticks, the results can be awkward at best.

To be worthy of the Xbox brand, Microsoft needs to design a front-end that is built from the ground up for handheld use case. That means large, easy-to-read design elements that can be easily navigated and selected without a mouse. It also means following SteamOS's example in surfacing the settings and tools most important to gamers.

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Microsoft's years of experience building elegant controller-driven interfaces for the Xbox console line should give the company a leg up in building a similar interface on top of Windows. Thus far, though, Microsoft has shown no interest in re-creating that console-like interface through the Windows Xbox app. Here's hoping previous reports that Microsoft is working on a "lightweight version" of the Xbox user interface for handheld gaming end up panning out.

A gaming-focused OS

Asus ROG Ally screen compared to Steam Deck — Running stock Windows on gaming portables leaves a lot to be desired. Credit: Kevin Purdy

While Windows has been the premier PC gaming operating system for a while now, the operating system as a whole is obviously designed for much more than gaming. For a gaming-focused handheld, Microsoft needs to make a version of the operating system that's streamlined to focus on the tools and features game makers and players need without all the bloat associated with ones they don't.

The 2017 introduction of Windows Game Mode was a step in the right direction here, turning off unnecessary background processes and focusing CPU and memory resources on the game in question. And Microsoft's Xbox consoles have long been built off a Windows core, showing how the PC OS can be modified for gaming purposes.

For a dedicated gaming handheld, though, Microsoft should go even further and craft a miniature version of Windows that's laser-focused on running one game at a time on specific portable hardware. Besides streamlining performance, reducing OS overhead, and improving battery life, such a move would mean portable Xbox gamers won't have to worry about automatic printer driver updates or a bunch of mysterious background tasks clogging up their processor.

More than just Xbox

A screenshot from Warcraft II original PC game, showing a wooded riverbank, with 9 orcs selected to move through it. — If you can't download *Warcraft II* from GOG onto your portable Xbox, why even bother? Credit: GOG/Blizzard

Any Xbox-branded portable gaming system will obviously integrate deeply with Microsoft's existing Windows Xbox App. But it would be a mistake for Microsoft to restrict the hardware to that Microsoft-controlled platform. Players should be able to install games from competitors like Steam, the Epic Games Store, GoG, and others on their Xbox-branded handheld, even if that doesn't necessarily align with the branding.

This kind of functionality doesn't have to be front and center in the portable's streamlined UI; Microsoft could hide these features behind a special system option, a la the Steam Deck's Linux desktop mode. But power users who don't want to limit themselves to Microsoft's online store will need to be able to treat their Xbox handheld like any other Windows device if they so choose.

Bring old Xbox games to PC

The ultimate handheld system seller. Credit: Microsoft / Bizarre Creations

Microsoft has made a lot of hay over the way recent Xbox consoles can play games dating all the way back to the original Xbox. If Microsoft wants to set its first gaming handheld apart, it should make those old console games officially available on a Windows-based system for the first time.

The ability to download previous console games dating back to the Xbox 360 era (or beyond) would be an instant "system seller" feature for any portable Xbox. While this wouldn't be a trivial technical lift on Microsoft's part, the same emulation layer that powers Xbox console backward compatibility could surely be ported to Windows with a little bit of work. That process might be easier with a specific branded portable, too, since Microsoft would be working with full knowledge of what hardware was being used.

If Microsoft can give us a way to play Geometry Wars 2 on the go without having to deal with finicky third-party emulators, we'll be eternally grateful.

Multiple hardware tiers

Xbox Series S (left), next to Xbox Series X (right). — One size does not fit all when it comes to consoles or to handhelds. Credit: Sam Machkovech

On the console side, Microsoft's split simultaneous release of the Xbox Series S and X showed an understanding that not everyone wants to pay more money for the most powerful possible gaming hardware. Microsoft should extend this philosophy to gaming handhelds by releasing different tiers of portable Xbox hardware for price-conscious consumers.

Raw hardware power is the most obvious differentiator that could set a more expensive tier of Xbox portables apart from any cheaper options. But Microsoft could also offer portable options that reduce the overall bulk (a la the Nintendo Switch Lite) or offer relative improvements in screen size and quality (a la the Steam Deck OLED and Switch OLED).

“Made for Xbox”

It worked for Valve, it can work for Microsoft. Credit: Valve

One of the best things about console gaming is that you can be confident any game you buy for a console will "just work" with your hardware. In the world of PC gaming handhelds, Valve has tried to replicate this with the "Deck Verified" program to highlight Steam games that are guaranteed to work in a portable setting.

Microsoft is well-positioned to work with game publishers to launch a similar program for its own Xbox-branded portable. There's real value in offering gamers assurances that "Made for Xbox" PC games will "just work" on their Xbox-branded handheld.

This kind of verification system could also help simplify and clarify hardware requirements across different tiers of portable hardware power; any handheld marketed as "level 2" could play any games marketed as level 2 or below, for instance.

Kyle Orland Senior Gaming Editor

Kyle Orland has been the Senior Gaming Editor at Ars Technica since 2012, writing primarily about the business, tech, and culture behind video games. He has journalism and computer science degrees from University of Maryland. He once wrote a whole book about Minesweeper.

162 Comments

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rhavenn

I mean, the big selling point of the Steam Deck is it gives you access to a lot of your Steam library in a portable format. Bonus that you don't need a Windows license.

So, will this XBox "thing" be able to run Steam and Steam (PC) games or is this going to be a portable XBox that ties to your XBox account and that game library? How many ads and other shit is MS planning on shoving in your face? Will it have a mandatory CoPilot subscription fee to help you game better? A Clippy fee just because?

Most PC gamers use Steam. Period. Full stop. So, if MS goes with the Xbox game library route then their only real target market will be Xbox users. I doubt a lot of PC gamers will jump ship if they don't already have a Xbox.

March 11, 2025 at 7:01 pm