Rumors have been flying all year that Xbox is working on a PC gaming handheld. On Wednesday, Microsoft Gaming CEO Phil Spencer confirmed that plans are underway, though it sounds like an actual portable device is still a few years out.

The Steam Deck and the Nintendo Switch continue to dominate the handheld market, but Microsoft seems to be aiming to change that.

Xbox is exploring a PC gaming handheld, Microsoft Gaming CEO Phil Spencer told Bloomberg. In an earlier interview with IGN, Spencer had mentioned a hypothetical “Xbox gaming handheld PC device,” which now appears to be in the early research and prototyping stage.

Microsoft has confirmed prototypes are being developed for an Xbox handheld, as it seeks to rival the Nintendo Switch and Steam Deck.

Rumors continue to swirl about the possibility of Xbox releasing a handheld, posing questions about what this hypothetical device could look like.

It’s no secret that Microsoft – and the Xbox department within it – has an interest in handheld consoles. Microsoft Gaming CEO Phil Spencer has said as much many times, praising existing handheld gaming PCs like the Steam Deck and the Asus ROG Ally and hinting that it might be something Microsoft itself dips its toes into.

Microsoft Gaming boss Phil Spencer has confirmed the company’s plan to release an Xbox handheld, but stressed it’s years away from release. In an interview with Bloomberg, Spencer said the “expectation is that we would do something” in the handheld game devices category,

Xbox boss Phil Spencer has confirmed that Microsoft really is working on a handheld gaming device, with prototypes already in the works, but believes that the actual product is still a few years away.