Spencer’s confirmation comes just a couple of months after Microsoft’s layoff of 650 gaming division employees.

Microsoft Gaming boss Phil Spencer has confirmed the company’s plan to release an Xbox handheld, but stressed it’s years away from release. In an interview with Bloomberg, Spencer said the “expectation is that we would do something” in the handheld game devices category,

It’s no secret that Microsoft – and the Xbox department within it – has an interest in handheld consoles. Microsoft Gaming CEO Phil Spencer has said as much many times, praising existing handheld gaming PCs like the Steam Deck and the Asus ROG Ally and hinting that it might be something Microsoft itself dips its toes into.