Microsoft's first full foray into PC gaming handhelds begins with a partner device set to launch later this year, with its own Xbox Series X|S successors now fully in production.

According to a new report, Microsoft will partner will a gaming PC manufacturer on the first official Xbox handheld console this year.

There's been plenty of speculation on when Microsoft was going to enter the handheld gaming fray. The Xbox maker appears to have something in the works that may be further along than expected. Microsoft is working with an unknown manufacturer to make its own Xbox-branded gaming handheld,