A TOP-SECRET Xbox console that was potentially due out in just two years has been shelved.
New reports suggest the unannounced machine has been paused indefinitely â with its planned launch cancelled entirely.



Rumours of a handheld console have been circulating for years..
And in 2024, Microsoft’s Xbox boss Phil Spencer confirmed that the company was prototyping the machine.
It would’ve lived alongside the plug-in-to-your-telly Xbox Series X as a more portable option for gamers.
But a new report from Windows Central warns that Microsoft has “shifted priorities”; and is pausing work on the gadget entirely.
Instead, the report notes, Microsoft will pour its efforts into boosting gaming performance.
That will help Microsoft boost the Asus partner gadget Project Kennan, which is a handheld gaming machine instead built by the Taiwanese tech giant.
It notes that Microsoft would still like to produce a gaming handheld in the future, but is going to spend its time
RIVAL MACHINES
Microsoft will be feeling the pressure from gamers to compete with its industry rivals.
Back in November 2023, released the handheld Portal.
This portable gadget device streams from your PS5 over the internet â and has a built-in controller.
Japanese gaming giant is also nearly ready to debut .
The new 2 is expected to land in stores on June 5.
It’ll plug into televisions â but can also work undocked as a for when you’re out and about.
And Nintendo saw runaway success with its , which launched back in 2017.

Also worrying Microsoft will be the Deck, which is a handheld gaming device built by Valve.
The gaming giant is responsible for the virtual Steam store, which is one of the main ways PC gamers buy and play titles on their computers.
Valve’s Steam Deck lets players enjoy PC games on the go, and has been available since 2022.
To fend off these rivals, Microsoft has partnered with Asus to help with its upcoming Project Kennan portable device.

This will be an official Xbox partnership, but it’s not an in-house Microsoft product like the paused handheld machine would’ve been.
Microsoft is still expected to release a major new at-home console in the next few years.
This will be a sequel to the Xbox Series X, and could land in 2027 or 2028 â as a direct rival to the rumoured Sony PlayStation 6.
The Sun has asked Microsoft for comment and will update this story with any response.