The Xbox handheld has been canceled over AMD's high minimum order requirements, according to rumors circulating online.
The rumors originated from the NeoGAF forums, where known AMD leaker Kepler L2, who accurately provided information multiple times in the past regarding AMD products, including consoles, said that, as far as they know, the handheld was canceled because AMD wanted a commitment of over 10 million units to justify the R&D required to make a dedicated SoC for the console. However, with the Steam Deck selling around 5 million units, and the ASUS ROG only selling no more than 2 million units, Microsoft didn't want to take the risk.
Despite Kepler L2's excellent track record, we have to take the real reason behind the cancellation of the Xbox handheld with a grain of salt. As the system was never officially announced, Microsoft will unlikely release an official statement on it. However, considering the company's strategy seemingly shifting more towards becoming a third-party publisher, it's quite possible it didn't want to commit to producing so many units for a system that may not have been a massive seller.
Although the Xbox handheld was never formally announced, there was no doubt that a portable system has been in the works at some point, with execs teasing it multiple times in the past. The system would have been part of the company's handheld strategy, which is now going to be centered around the ROG Xbox Ally launching later this month. Despite its relatively high price, the handheld system is proving to be quite popular, as it's already sold out almost everywhere before its launch set for October 16.
About the author: Francesco De Meo has been covering video games and technology since 2012, starting his career at small outlets like Gamersyndrome and GeekSnack. After joining Wccftech gaming section in 2015, he quickly expanded his video gaming coverage with in-depth reporting, interviews with iconic industry figures such as Grasshopper Manufacture founder and No More Heroes creator Goichi "Suda51" Suda, Resident Evil series creator Shinji Mikami, Team NINJA's president and Nioh series director Fumihiko Yasuda, and Silent Hill creator Keiichiro Toyama, reviews and on-the-ground coverage of major industry events such as Gamescom and E3. When he's not reporting or reviewing, Francesco can be found playing the genres he loves most, spending time with his six cats, reading, writing music, playing guitar and drumming for his progressive rock band.
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