In a surprising but telling move, Microsoft has reportedly delayed its in-house Xbox handheld—once expected in 2027—to focus on a more urgent battleground: fixing Windows for handheld gaming. The decision shifts attention from hardware to software, specifically to making Windows 11 perform as well—or better—on gaming handhelds compared to Valve’s Linux-based SteamOS. And that may be Microsoft’s only shot at staying competitive in the rapidly growing portable PC market.
Why Microsoft Hit Pause on the Xbox Handheld
Initially, Microsoft planned to launch a dedicated Xbox handheld console, but early tests reportedly revealed challenges running native Xbox titles efficiently on portable hardware. Rather than release a lackluster product and risk another Zune-like flop, Microsoft pivoted. The company is now prioritizing software—streamlining Windows 11 to work more efficiently on existing and upcoming handheld devices.
This isn’t just theory. The Steam Deck, Lenovo Legion Go (SteamOS version), and other Linux-based handhelds have proven that a lightweight, gaming-optimized OS can drastically outperform Windows in terms of battery life, system responsiveness, and controller-native UI experiences.
Windows vs. SteamOS: The Real Fight
Valve’s SteamOS offers an out-of-the-box gaming experience: fast boot times, minimal bloat, gamepad-friendly navigation, and efficient resource usage. In contrast, Windows 11 on handhelds has been plagued by high background CPU usage, poor power management, inconsistent touchscreen input, and UI elements clearly designed for mouse and keyboard.
The backlash has been loud. Reddit is flooded with users complaining about needing to install community-made tools like Handheld Companion or alternative launchers just to make Windows usable on devices like the ROG Ally or Ayaneo 2S. Others have outright replaced Windows with SteamOS or custom Linux distributions like Bazzite, praising the smoother gameplay and longer battery life.
Enter “Project Kennan” – Microsoft’s Software-Led Hardware Strategy
Instead of racing to build their own handheld, Microsoft is collaborating with Asus on a Windows-powered Xbox-branded device known as “Project Kennan.” This console-like handheld is expected later in 2025 and will run a modified version of Windows 11—not Xbox OS. It will focus on Game Pass access, Xbox Play Anywhere, and cloud gaming via Xbox Cloud Streaming. But critics are skeptical.
“Why call it Xbox if it doesn’t run Xbox games natively?” some ask. It’s a valid point. Without Series S|X-level support or an optimized OS, Project Kennan may just be another underpowered Windows tablet in a fancy shell—unless Microsoft delivers something fundamentally different with its software.
The Missed Opportunity: Where’s the “Windows Gaming Edition”?
Many gamers and developers argue the real answer is a lean, console-like version of Windows: no telemetry, no Copilot AI, no OneDrive sync, no unnecessary background processes—just games, performance, and power efficiency. Xbox already runs a highly stripped-down Windows variant, so why not offer that to the public?
One Redditor summed up the frustration best:
“They could win this fight if they really wanted to. Just release Windows without the bloat. That’s it. That’s the whole feature.”
But so far, Microsoft hasn’t delivered. Attempts like “Game Mode” in Windows have been half-measures. And the longer they delay, the more Valve—and Linux—eat into their dominance.
The Bigger Picture: Microsoft’s Gaming Identity Crisis
Microsoft’s split approach—Windows for PC, Xbox for console—now faces a convergence point. The success of Steam Deck and the increasing interest in portable PC gaming have blurred the lines. Gamers want a portable device that “just works,” whether it’s Xbox, Steam, or Game Pass.
Instead of launching two separate hardware lines (Windows handhelds and Xbox handhelds), Microsoft has an opportunity to unify the experience. Imagine an “Xbox Portable” that boots like a console but is powered by a minimal Windows kernel optimized specifically for gaming. It could merge Game Pass, PC gaming, and even cloud streaming into one cohesive device.
But will Microsoft get there before Valve, Sony, or someone else beats them to it?
Microsoft has the resources, ecosystem, and infrastructure to compete—but only if they commit. In a space where SteamOS took a decade of patient development and community feedback, Microsoft needs more than hardware partnerships. It needs to make Windows a gamer’s OS again.
Until then, SteamOS remains the handheld champion—not because it has more features, but because it simply gets out of the way and lets people play.
A Look Back At Xbox In 2024
Xbox’s annual Year in Review feature has returned for 2024, giving gamers a personalized look at their gaming habits over the past year. The feature analyzes players’ gaming history to create custom profiles based on their favorite titles and playstyles. Xbox Year in Review 2024 offers more personalization than ever before, with customized looks based on your most-played games and detailed statistics about how many games you’ve played and completed.
For Microsoft’s gaming division, 2024 has been a year of mixed results. While many excellent games arrived from Microsoft-owned studios, some players have expressed concerns about changes to the Game Pass service. The acquisition of Activision-Blizzard has also placed additional scrutiny on Xbox’s performance and strategy, creating both opportunities and challenges for the platform.
Key Takeaways
- Xbox Year in Review 2024 provides personalized gaming statistics and profiles based on players’ gaming habits.
- The feature now includes customized visuals reflecting your most-played game and detailed completion statistics.
- Despite releasing strong titles from first-party studios, Xbox faced challenges with Game Pass changes and Activision-Blizzard integration.
Xbox 2024: A Year in Review
Microsoft’s Xbox platform experienced significant shifts throughout 2024, with major developments in its subscription services, hardware performance, and exclusive game lineup. The platform continued to adapt to an evolving gaming landscape while focusing on player engagement across multiple devices.
Expanding the Xbox Ecosystem
Microsoft pushed forward with its multi-device strategy in 2024, expanding Xbox gaming beyond traditional consoles. The Xbox app saw enhanced functionality on smart TVs, mobile devices, and PC platforms, allowing gamers to access their libraries across more devices than ever before.
Cloud gaming capabilities improved substantially with reduced latency and expanded server locations. This enabled smoother gameplay experiences for Game Pass Ultimate subscribers streaming games.
Xbox’s partnership program grew to include more third-party hardware manufacturers, resulting in new controller options and accessories designed specifically for cloud gaming on mobile devices.
The Xbox mobile app received major updates, including improved social features and remote play options that allowed gamers to access their home console from virtually anywhere with a stable internet connection.
Game Pass Milestones and Evolutions
Game Pass underwent significant changes in 2024, most notably with revised subscription tiers and pricing structures. The service hit a milestone of over 30 million subscribers by mid-2024, cementing its position as the leading gaming subscription service.
The catalog expanded with several day-one releases from both first and third-party studios. However, some subscribers noted that the overall value proposition changed as certain titles began rotating out of the service more quickly than in previous years.
Game Pass Tier Comparison (2024)
| Tier | Price | Features |
|---|---|---|
| Core | $9.99/month | Basic game library access |
| Standard | $14.99/month | Full library, EA Play |
| Ultimate | $19.99/month | Full library, EA Play, Cloud Gaming, PC Game Pass |
The PC Game Pass component saw substantial growth, with Microsoft optimizing more titles specifically for desktop gaming experiences and introducing PC-exclusive perks.
Xbox Series X and Series S: Performance and Sales
The Xbox hardware line maintained steady performance in 2024, with both Series X and Series S receiving minor firmware updates to improve system stability and game loading times. Combined sales of both consoles reached approximately 25 million units worldwide by the end of the year.
The mid-generation refresh rumors continued throughout 2024, though Microsoft focused instead on software optimizations for existing hardware. This included enhanced backward compatibility features and improved Quick Resume functionality.
Supply chain issues that plagued earlier years largely resolved, making both console variants readily available at retailers. The Series S particularly found success as an affordable entry point into the Xbox ecosystem.
Microsoft introduced several limited-edition console designs tied to major game releases, helping to drive sales during key launch windows.
Notable Game Releases and Exclusives
2024 proved to be a strong year for Xbox game releases, with several standout titles from Microsoft’s first-party studios.
Key Xbox Exclusives in 2024:
- Perfect Dark (The Initiative)
- Avowed (Obsidian Entertainment)
- State of Decay 3 (Undead Labs)
- Forza Motorsport expansion content
Third-party partnerships delivered several timed exclusives that helped strengthen the platform’s appeal. The ongoing support for existing titles like Halo Infinite and Forza Horizon 5 with substantial content updates kept players engaged.
Xbox Game Studios continued integration of newly acquired Activision Blizzard properties, though many of these games remained multi-platform as Microsoft honored existing agreements. The strategy focused on bringing these titles to Game Pass to add value for subscribers.
User engagement statistics revealed players spent an average of 157 games throughout the year, with many completing approximately 85 titles, showing strong engagement across the Xbox platform.
Strategic Moves and Industry Impact
Microsoft’s Xbox division made several key strategic decisions in 2024 that reshaped its position in the gaming marketplace. These moves reflected both responses to industry pressures and forward-thinking initiatives designed to secure Xbox’s future in an increasingly competitive landscape.
Activision Blizzard Acquisition Impact
The Activision Blizzard acquisition continued to send ripples through the gaming industry throughout 2024. After finalizing the $68.7 billion deal, Microsoft began integrating popular franchises like Call of Duty, Diablo, and World of Warcraft into the Xbox ecosystem. This massive portfolio expansion strengthened Xbox Game Pass significantly, with subscriber numbers growing by 35% following the addition of Activision Blizzard titles.
The acquisition also created new challenges. Regulatory scrutiny remained intense, with Microsoft navigating commitments to maintain Call of Duty’s availability on PlayStation platforms. Internal restructuring led to some studio consolidations, though Microsoft maintained its promise to preserve creative independence for key development teams.
The financial impact became clearer as 2024 progressed, with Activision Blizzard’s revenue streams contributing substantially to Microsoft’s gaming division profits.
Xbox and the Competition with Sony and PlayStation
The Xbox-PlayStation rivalry evolved significantly in 2024. While PlayStation maintained its hardware sales advantage with the PS5, Xbox gained ground through its services-first approach. Game Pass subscriptions reached new heights, offering a compelling alternative to traditional console ownership.
Microsoft’s strategic pivot to releasing first-party titles on PlayStation proved controversial but financially sound. Games like Indiana Jones and the Great Circle appeared on PS5 several months after Xbox/PC launch, generating additional revenue while maintaining platform exclusivity periods.
The competition intensified around cloud gaming capabilities, with both companies enhancing their offerings. Xbox Cloud Gaming expanded to more regions and devices, while PlayStation’s cloud service underwent substantial improvements.
Price points remained a key battleground, with Xbox Series S becoming an increasingly attractive entry-level option against Sony’s more premium-focused hardware strategy.
Innovations: Handheld Console Speculations and Multi-Platform Growth
Rumors of an Xbox handheld device gained substantial credibility in 2024. Industry insiders reported that Microsoft had advanced prototypes in development, designed to compete with devices like the Steam Deck and ROG Ally. The potential handheld would leverage Xbox Cloud Gaming while offering native gameplay for select titles.
Multi-platform expansion became a core Xbox strategy. Beyond PlayStation releases, Microsoft strengthened its presence on mobile platforms through:
- Enhanced Xbox mobile app features
- Cloud streaming improvements on iOS and Android
- Strategic partnerships with mobile hardware manufacturers
The Xbox ecosystem grew more device-agnostic, with Smart TV apps and streaming stick compatibility expanding to new markets. This approach allowed Xbox to reach players regardless of their preferred gaming hardware.
The rumored “Xbox Everywhere” initiative took shape through these innovations, positioning Xbox as a gaming service rather than merely a console platform.
Leadership: Phil Spencer’s Vision for the Future
Phil Spencer’s leadership continued to define Xbox’s direction in 2024. His public statements emphasized three core pillars: accessibility, community building, and creative diversity. Spencer defended the controversial multi-platform strategy as necessary for Xbox’s long-term health.
Under Spencer’s guidance, Xbox invested heavily in diverse gaming experiences. The Developer Showcase highlighted indie partnerships alongside major studio productions, demonstrating commitment to varied content.
Spencer addressed industry challenges directly, speaking candidly about gaming’s affordability issues and proposing solutions through tiered Game Pass offerings. His transparency regarding both successes and setbacks earned respect from the gaming community.
The leadership team expanded its focus on accessibility initiatives, launching new hardware and software features to make gaming more inclusive. Spencer positioned these efforts as not just morally important but essential for expanding Xbox’s potential audience in increasingly competitive markets.
Frequently Asked Questions
Xbox’s Year in Review 2024 offers users insights into their gaming habits and statistics. Here are answers to common questions about this feature and Xbox’s performance during the year.
What are the highlights of Xbox’s performance in 2024?
Xbox made significant changes to its membership tiers in 2024. The company removed the Game Pass for Console tier, shifting focus to its other subscription options.
Microsoft continued to expand its game library and services through strategic partnerships and acquisitions.
Player engagement remained strong across first-party titles and popular third-party games on the platform.
How can users access their personal Xbox Year in Review for 2024?
Users can access their Xbox Year in Review 2024 by visiting the official Xbox website and signing in with their Microsoft account.
The personalized review displays statistics like total gaming hours and identifies the top three games played during the year.
Some users reported incorrect data in their reviews, with gaming hours and most-played games not matching their actual gameplay statistics.
What new features were introduced to the Xbox platform in 2024?
New for 2024, the Year in Review includes a customized look based on users’ most-played games, enhancing the personalization of the experience.
Microsoft added personalized gamer profiles that reflect the types of games users enjoy playing.
The platform saw interface updates and performance improvements throughout the year to enhance the overall user experience.
How did Xbox’s 2024 achievements compare to PlayStation’s during the same period?
Xbox continued to focus on subscription services and cross-platform availability, while PlayStation maintained strength in exclusive titles.
Both platforms competed for market share, with each emphasizing different aspects of their gaming ecosystems.
Microsoft’s focus on cloud gaming and accessibility features created distinct advantages in certain market segments compared to PlayStation’s offerings.
What were the top-selling Xbox games in the year 2024?
Call of Duty remained a dominant title on Xbox platforms, with many users reporting it as their most-played game in their Year in Review.
Microsoft’s first-party titles performed well alongside major third-party releases from publishing partners.
Games available through Game Pass showed strong engagement metrics, demonstrating the value of the subscription model.
What are the anticipated developments for Xbox in the upcoming years?
Microsoft has indicated plans to improve the Year in Review feature, with promises for enhancements in the next iteration.
The company continues to invest in cloud gaming technology and service improvements across its gaming ecosystem.
Future hardware developments remain a point of interest for fans, though Microsoft has been focusing more on software and services than traditional console cycles.
