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Microsoft deserted in-house Xbox handheld due to AMD prices, says rumor

October 6, 2025
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A brand new rumor means that Microsoft canceled improvement of its personal in-house Xbox handheld, and it is all all the way down to AMD. Whereas we’re simply weeks away from the brand new Asus-built ROG Xbox Ally launching, it is now been claimed that Microsoft beforehand thought-about constructing its personal handheld in-house. These plans, the rumor suggests, have been canceled as a result of AMD needed a considerably excessive order of 10 million CPUs earlier than it could proceed.

A lot of the entries in our greatest handheld information are powered by an AMD processor proper now, together with the Steam Deck, which additionally has a customized CPU. AMD has dominated the hand held gaming PC market with its devoted APUs, and if this rumor is true, it implies that Microsoft could not meet the chip maker’s calls for for a customized CPU.

This info, whereas very a lot unconfirmed, was revealed by common {hardware} tech leaker KeplerL2 in a publish on the Neogaf boards, which mentioned Microsoft’s present {hardware} technique. Following a query about Microsoft’s personal handheld plans, KeplerL2 means that, so far as they know, Microsoft backed out of constructing a handheld in-house as a result of “AMD needed a dedication of 10m+ models to justify making a devoted SoC.”

KeplerL2 goes on to say that, on condition that the Steam Deck solely bought “~5 million models” whereas different handhelds, reminiscent of these from Asus and Lenovo, solely bought “1-2 million,” Microsoft “did not need to take the chance” of continuing with such a excessive order.

AMD has developed customized APUs for handhelds earlier than, so this would not have been uncommon, particularly for an organization reminiscent of Microsoft, which makes use of customized AMD chips to energy its Xbox consoles. The Steam Deck, for example, makes use of a customized AMD APU, that includes 4 Zen 2 CPU cores and an RDNA 2 GPU, with the codename Van Gogh. That design has since reportedly been used as the premise for the brand new AMD Ryzen Z2 A, however was particularly designed for the Steam Deck.

Microsoft by no means confirmed that it was constructing its personal Xbox handheld in-house. Nevertheless, as we all know now, the corporate did proceed with an Xbox-branded handheld, partnering with Asus to construct it externally as a substitute. The Asus ROG Xbox Ally and ROG Xbox Ally X are each set to launch on October 16, with the base-model ROG Xbox Ally utilizing the aforementioned AMD Ryzen Z2 A. The ROG Xbox Ally X, in the meantime, makes use of the extra highly effective AMD Ryzen Z2 Excessive.

Prep an enormous grain of salt, nonetheless. In keeping with Home windows Central’s Jez Corden on this publish on X (previously Twitter), this info “is not even barely true.” KeplerL2 does have a robust fame for rumors and leaks, however Corden’s hyperlinks inside the trade are fairly stable, too.

Both means, it is fascinating to see that Microsoft might have investigated the potential of constructing a handheld itself, and whereas that did not come into fruition, it hasn’t stopped the corporate’s plans for handheld gaming. Our latest ROG Xbox Ally preview at Gamescom, together with the ROG Xbox Ally’s specs, give us excessive hopes that the 2 new Xbox portables are going to be critically highly effective entries into the market, particularly given Asus’ previous releases. We’ll be eager to place that concept to the take a look at as soon as they each launch.

Till then, take a look at our Asus ROG Ally X assessment to see our ideas on the final Asus handheld to launch. In case you’re in search of a much bigger (however nonetheless moveable) rig for gaming, our greatest gaming laptop computer information has choices to swimsuit any price range.

Excited to present the brand new ROG Xbox Ally a attempt when it launches? Tell us your ideas on the brand new Xbox handhelds by beginning a dialog in our neighborhood Discord server at the moment.



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Tags: AbandonedAMDCostsHandheldinhouseMicrosoftRumorXbox
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