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shikamaru317 said:

If they are working on it I really hope it is an open platform PC handheld to compete with Steam Deck and the like, last thing Xbox needs to be doing right now is spreading 1st and 2nd party resources thin developing heavily optimized ports for a closed Xbox handheld.

IMO, it will depends on whether or not MS can make Slim series S in handheld format or not, and that should not be too difficult

 If they can then I expect them to do so and get:

  1. A less power-hungry OS
  2. An already optimized library
  3. Overall way more power efficiency than a PC handheld could hope to achieve
  4. Ability to sell a a lower price point

But I would also very much like to see a PC handheld version