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A new Xbox handheld is reportedly set to take on the Steam Deck this year

  • Microsoft has reportedly struck a deal with partners to release an Xbox handheld in 2025.
  • The device is expected to run on Windows, which has been viewed as a weakness for handhelds.
  • This move has the potential to disrupt the market, challenging Steam Deck as the best handheld gaming PC.
  • There is uncertainty if Windows will be optimized for the Xbox handheld upon its release.

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