Xbox executive Phil Spencer hinted at this possibility in an interview with Bloomberg that was published on Wednesday. As he put it, the "expectation is that [Xbox] would do something" in the handheld gaming market and the company is working on prototypes right now.

Microsoft Gaming boss confirms future plans for a handheld Xbox, but why wait years for hardware when the experience is already here?

Well, no longer do we have to rely on rumors, as the CEO of Microsoft Gaming, Phil Spencer, has revealed in a Bloomberg interview that Xbox handheld prototypes are currently being worked on. The caveat is that this hardware is still a few years out.