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Xbox handheld rumoured to be 'essentially cancelled' but the new Asus Xbox Ally is actually a preview of all future Xbox consoles, not just handhelds

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No more dedicated Xbox consoles built by Microsoft, so the story goes...

An ROG Xbox Ally X and Ally shown during Microsoft's Xbox stream in June 2025.
(Image credit: Microsoft)

A new report on the Verge is claiming that the Xbox handheld console is toast. Or to quote directly, "it's essentially canceled". That initially seems confusing, after all hasn't the first Xbox handheld only just been announced?

There are plenty of caveats to cover off here, not least that this is a rumour about a product that hasn't even been confirmed to exist, let alone been launched. But there is something interesting going on that's worth understanding.

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