In a move that’s sure to disappoint portable gaming fans, Microsoft has decided to pause development on its long-rumored Xbox handheld console. Sources close to the project reveal that the decision comes amid a broader pivot in Xbox’s hardware strategy—shifting resources away from new hardware and back toward ecosystem expansion and cloud gaming.

Microsoft has unveiled a new addition to Xbox Game Pass: Retro Classics, a collection featuring over 50 classic Activision titles from the 1980s and 1990s. This initiative, developed in collaboration with Antstream Arcade, aims to preserve gaming history by bringing these timeless games to modern platforms.