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Speaking to Bloomberg, the longtime Xbox executive addressed the ongoing speculation about whether Microsoft would hop into the current PC gaming handheld arms race. “ [The] expectation is that we would do something [in that category],

Xbox executive Phil Spencer hinted at this possibility in an interview with Bloomberg that was published on Wednesday. As he put it, the "expectation is that [Xbox] would do something" in the handheld gaming market and the company is working on prototypes right now.

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Microsoft is developing a handheld Xbox gaming device, but it won't be released for several years. Xbox CEO Phil Spencer confirmed the company is prioritizing improvements to the Xbox app on existing devices first.

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.