Case in point: the Xbox handheld. Rumors of some kind of Microsoft-made competitor to the Game Boy have been floating around since the original Xbox launched more than 20 years ago. And for even longer, anyone who tries to step up to Nintendo on its stomping ground — including Sega, Sony, and Nokia — gets, well, stomped.

Microsoft CEO confirms development of handheld Xbox, still in prototype stage. (86 characters) Microsoft aims to replicate Nintendo's handheld success, learning from past failures. (85 characters) Introduction of handheld Xbox may expand market appeal,

Microsoft gaming head Phil Spencer has made no secret of his interest in an Xbox handheld to compete with the best handheld gaming PCs, such as the Steam Deck OLED and Asus ROG Ally X. But in an interview with Bloomberg,

While the company has not announced concrete plans for a dedicated handheld device, presumably like the Steam Deck or ASUS ROG Ally, Spencer confirmed that Microsoft is actively prototyping and researching the market.

Xbox chief Phil Spencer said that the hardware team has created prototypes and is researching the market to solidify plans.