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Ryuu96 said:

Alot depends on if they are going to mandate ports next gen or not. If devs are forced to make ports for both this rumored hybrid dockable handheld and the home console, then the specs on the handheld need to be as high as possible so as not to handicap development on the much faster home console. 

However, if the dockable handheld doesn't have a port mandate and devs can choose whether or not they want to port a game to it, then I think Xbox could go with somewhat lower specs for a cheaper price tag.  Design the specs high enough to play the Series S versions of games on back compat, so that it could run the full 360/XB1/XSS BC library, as well as allow a Steam install on the handheld's stripped down Windows based Xbox OS, so that gamers can get any older games in their Steam library to run on it. That older gen game support through both Xbox Back compat and Steam should be enough game support when combined with whatever optimized handheld ports of games devs decide to release on Xbox store.