Phil Spencer, the CEO of Microsoft Gaming, has confirmed that the Xbox handheld gaming console is in development.

In a recent interview with Bloomberg, Spencer expressed awareness of the increasing demand for portable gaming options and highlighted that Microsoft is exploring several avenues in this burgeoning market. However, he cautioned fans to temper their expectations, as the project is still in the initial stages of development.

Spencer shared insights that Microsoft is currently in the prototyping phase of its first handheld gaming system, hinting at a thoughtful and strategic approach to entering the portable gaming arena. He emphasized the need for Microsoft to create not just a device, but to develop a comprehensive vision that distinguishes it from competitors.

“I think our team could do some real innovative work, but we want to be informed by learning and what’s happening now,” Spencer remarked, indicating a long-term commitment to the project.

While the excitement builds around the potential of a Microsoft handheld console, the reality is that it may take several years before a product reaches consumers. Spencer noted that the company is prioritizing the refinement of its concepts and gathering valuable insights to inform the final design.

In the coming months, Microsoft is not standing still. Spencer mentioned that the company aims to enhance the Xbox app experience on existing portable devices. He acknowledged that the current app is “good rather than great,” and improving its functionality and performance is a key focus for the team moving forward.