Microsoft’s upcoming Xbox handheld, likely releasing by 2027, may feature a Switch-style docking system, allowing both handheld and TV play. Reports suggest two handheld projects: one by ASUS (possibly 2025) and a "true" successor by Microsoft (2027). The latter may use Qualcomm chips, support games from Microsoft Store, Epic, and Steam, and could even run PlayStation titles—a first for Xbox. However, details remain unconfirmed. Release timelines vary, with some pointing to 2027 and others to 2028.
I never get the mind blowness some people get about a hypothetical future Xbox branded handheld that could runs all these stores that can play PlayStation games. It's a PC. You can play PlayStation games on Windows devices for years now. It's not a gotcha big brain strategic masterpiece on Microsofts part. Pay Valve to play PlayStation games. Current Xbox gamers in the future pay Valve to play 3rd party games rather than Microsoft