Microsoft develops handheld Xbox console with new gaming OS

Microsoft is developing a handheld Xbox console, with more details expected later this year. Xbox head Phil Spencer confirmed prototypes are in progress, but the device is still years away from release. The new handheld will combine Xbox games with Windows, differing from earlier expectations of a traditional console. Microsoft aims to create a gaming-focused operating system tailored for handheld use. Current Windows gaming handhelds face criticism for performance issues. Microsoft plans to address these by designing a new OS that enhances gaming experiences without relying on keyboard and mouse functionality.