Handheld gaming lovers, brace yourselves: Microsoft has officially pulled the plug on its much-rumoured Xbox handheld console. After months of speculation, the dream of a portable Xbox to rival the Nintendo Switch and Valve's Steam Deck has been shelved, with Microsoft choosing a different path for its gaming future.

Microsoft and Asus have been collaborating closely on these two new Xbox Ally devices over the past year, and Yen says Microsoft and Asus “share a joint obsession” on these new handhelds.

Xbox players will soon get the freedom to play anywhere with two handheld consoles that Microsoft plans to release this holiday season.