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According to Windows Central managing editor Jez Corden, Microsoft (MSFT) is working on an Xbox handheld prototype. "I know that they have got handheld prototypes right now," Corden said on the show, the Xbox Two Podcast.
Microsoft is reportedly experimenting with native Xbox gaming handhelds with the goal of bringing the dedicated console experience to on-the-go market.
According to rumors, Microsoft now has multiple Xbox handheld prototypes. All of them are meant to play Xbox games natively
Microsoft Gaming CEO Phil Spencer said last year that there was no need for an Xbox handheld in the market, owing to devices such as the Steam Deck.
Sources suggest that Xbox may be developing a fully native handheld console to expand beyond traditional home platforms. Prototypes for such a device are reportedly already in the works internally.