Although hasn't yet tried its hand at a handheld console, so it will certainly be intriguing to see what Xbox comes up with.
That being said, it's hard to deny that Xbox's new handheld device could be dead on arrival. Not only was the announcement itself confusing, but the services that Microsoft offers with Xbox Cloud Gaming also might defeat the point of a dedicated handheld system. As a matter of fact, it could be argued that Cloud Gaming is a superior choice over a handheld device thanks to its portability and accessibility.
The Announcement Of An Xbox Handheld Is Confusing
The Device Is Still A Few Years Away
The potential success of the Xbox handheld could already be squandered by its confusing announcement. Microsoft's work on a handheld device was revealed rather unceremoniously by Microsoft Gaming CEO Phil Spencer in an interview with release will not be seen for another few years.

StarCraft 2 On Xbox Game Revisits My Favorite Game Of All Time, But There's One Big Caveat I Didn't Plan On
StarCraft 2 is one of my favorite games of all time, but its introduction on Xbox Game and PC Game feels like an afterthought.
There's no reason that an announcement for the Xbox handheld had to be made so early, especially if the team is still in that prototype stage. The mere reveal of the console's development will inevitably cause huge anticipation and excitement among some Xbox players. That heightened excitement almost always comes with a heap of expectations about what the device will entail. Yet, at this stage, there's no telling the changes that will occur during development on the Xbox handheld, and the more time that es, the higher those expectations may become.
The high expectations from Xbox players could be a huge detriment to the console's development. The promise of a dedicated handheld device for Xbox could put pressure on the developers to finish the console in a timely manner rather than waiting to launch it until the perfect product and market opportunity have been secured. Rushing on something like a new device could result in some major issues with the overall product that would negatively impact the Xbox handheld upon its release, making the early announcement a baffling decision from Microsoft.
Cloud Gaming Already Makes Xbox A Portable Console
The Service Is Adaptable To Multiple Playstyles
More devastating to the Xbox handheld's potential success is how its sole purpose of portability is already being fulfilled thanks to Xbox Cloud Gaming. Available to players with an Ultimate-tier Xbox Game subscription, Cloud Gaming grants the player access to the service's stellar library from a multitude of devices, including PC, laptops, and mobile phones. Cloud Gaming has already succeeded in making Xbox portable, as players simply need a compatible device and controller to access games from nearly any location.
Xbox Game Ultimate also includes new releases that aren't available with a standard subscription, but the service costs $19.99 a month.
Moreover, Cloud Gaming is arguably a better alternative to a dedicated Xbox handheld thanks to its accessibility. The portability of an Xbox handheld comes with the caveat that players may have to stick with a certain playstyle on the device. On the other hand, Cloud Gaming's compatibility with a range of different controllers and control schemes, from using Sony's DualShock 4 to using a touch screen, makes the service far more convenient for the player, as they can pick up and play with almost no barriers to entry.

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Of course, Cloud Gaming isn't able to exceed in every aspect. A dedicated Xbox handheld would likely grant the player the ability to play titles offline, while Cloud Gaming is only beneficial so long as there's a consistently strong Wi-Fi connection. Despite this, Cloud Gaming, in all other aspects, remains a service that is far more adaptable to the player than a dedicated handheld device, making it the better way to make Xbox portable.
Cloud Gaming Is Only Going To Be More Accessible
Players Could Soon Stream Their Own Digital Library
There's no denying how Xbox Cloud Gaming has proven itself to be the superior option in making the system portable, and things are only going to get better for the service. The Verge reported in October that Microsoft was preparing to test a new update to Cloud Gaming that would allow players to stream their own digital libraries on Xbox. This update would once again reduce the need for a dedicated Xbox handheld, whose only saving grace at this point becomes the option for offline play.

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When looking into Xbox's current offerings, a handheld device seems like a pointless addition. Cloud Gaming not only achieves portability for Xbox, but the service is finding new ways to keep the player and their games closer together. Only time will tell how the Xbox handheld will fare, but at the moment, it doesn't seem like the strongest addition to Microsoft's gaming portfolio.