Rumors have been flying all year that Xbox is working on a PC gaming handheld. On Wednesday, Microsoft Gaming CEO Phil Spencer confirmed that plans are underway, though it sounds like an actual portable device is still a few years out.

Microsoft Gaming boss Phil Spencer has confirmed the company’s plan to release an Xbox handheld, but stressed it’s years away from release. In an interview with Bloomberg, Spencer said the “expectation is that we would do something” in the handheld game devices category,

Microsoft has confirmed prototypes are being developed for an Xbox handheld, as it seeks to rival the Nintendo Switch and Steam Deck.

Phil Spencer just confirmed that Microsoft wants to release an Xbox handheld. He also said that the company is still working on an Xbox mobile store and exploring more studio acquisitions.

It’s no secret that Microsoft – and the Xbox department within it – has an interest in handheld consoles. Microsoft Gaming CEO Phil Spencer has said as much many times, praising existing handheld gaming PCs like the Steam Deck and the Asus ROG Ally and hinting that it might be something Microsoft itself dips its toes into.

Hoping to get your hands on an Xbox handheld console? Well, the company says it's not launching any time soon.

Xbox boss Phil Spencer has confirmed that Microsoft really is working on a handheld gaming device, with prototypes already in the works, but believes that the actual product is still a few years away.