The gaming handheld space is bustling with products that unlock both new and better ways for us to play our favorite games on the go. There's a lot happening in the handheld gaming space, but one thing that caught my attention last week was the news about Microsoft's "possible" entry into the handheld gaming market, which was fueled by a survey it sent out asking people how they feel about gaming handhelds.

It's exciting news, but truth be told, we don't necessarily need another gaming handheld as there are already some fan-favorites out there dominating the market. An Xbox handheld — or whatever Microsoft decides to call it — excites me, nonetheless. Here are a few reasons why Microsoft should launch a gaming handheld, even though we don't need one at the moment.

It's good for Windows handheld experience

Windows runs poorly on small touchscreen devices now

It's no secret that Windows runs poorly on handheld gaming devices with a touchscreen. In fact, Xbox chief Phil Spencer even acknowledged that in a recent Polygon interview by noting the issues that plague current PC gaming handhelds, and how Microsoft is the company in a position to solve them. There's a good chance that the Xbox gaming handheld would only run a customized version of Windows with an Xbox interface instead of offering a "true" Windows experience like others, but it could still help improve the Windows handheld experience, which currently leaves a lot to be desired.

A handheld-friendly Windows interface can turn the tides in favor of Windows gaming handhelds, as the same interface with all the new features and improvements could trickle down to other PC gaming handhelds. A better Windows experience on handhelds would further cement Windows OS as the best platform for gaming, so there's no reason for Microsoft to gatekeep its handheld-friendly interface and prevent other manufacturers from using it. It'll only make other Windows handhelds — both new and existing ones — better, and that might push many to finally try a Windows handheld for gaming.

The ultimate machine for Game Pass on the go

Microsoft could work with devs for a better experience

Microsoft's Game Pass is arguably the best deal not only in gaming, but also in the world of subscriptions. It offers hundreds — if not thousands — of games for a nominal monthly fee, along with access to both online multiplayer and cloud gaming. Game Pass is a huge money maker for Microsoft, so why not make a portable Game Pass machine that guarantees a good experience out of the box?

It is true that Windows gaming handhelds like the ROG Ally allow you to access your Game Pass library, but it only gets you the Game Pass for PC, not the console version. A dedicated Xbox handheld, however, could bridge the gap between the two, allowing you to access the entire library of Xbox games, including both PC games and the ones that are exclusive to Xbox consoles. And as someone who plays games on both console and PC, I'd say Game Pass is superior on consoles, as the PC version doesn't work very well and has a lot of problems.

Not to mention, the games that are a part of the Game Pass on PC are also not well-optimized, with tons of performance issues on handhelds. Having a dedicated Xbox handheld, however, could potentially push Microsoft to work with developers and put out software that works better on a Windows handheld than it does now. That's just an added advantage over having the entire library of Xbox games.

Microsoft can get pricing right

Aggressive pricing is the name of the game

One of the main reasons why the current crop of Windows gaming handhelds from the likes of Asus and Lenovo cost so much more than something like the Steam Deck is because they're not selling an eco-system or making money on the software. They're essentially just hardware manufacturers dishing out some really cool and powerful products to let you play games, and that reflects quite evidently in their prices.

Microsoft, however, is no stranger to losing money on hardware, as it eventually makes up the differences through licensing and software sales. Microsoft can essentially do what Valve did with the Steam Deck to win in terms of market adoption. I don't know about you, but I would definitely buy a portable Xbox that's just as powerful as the competing Windows handhelds, at a much cheaper price. $700 for a gaming handheld is just a lot of money, especially when you can get a regular Steam Deck with an LCD screen for as low as $349.

An Xbox handheld is exciting

I'm sure nobody is dying to see another gaming handheld on the market as there are already some superb Steam Deck alternatives out there in 2024. That being said, the Xbox handheld could potentially be one of those things that you didn't know you needed, simply because of how it can solve a lot of portable gaming problems that aren't addressed by the current crop of Windows gaming handhelds.