50 games currently support this feature, including the likes of Call of Duty: Modern Warfare 2, Baldur's Gate 3, Balatro, Cyberpunk 2077, and more.
Spencer also discussed a mid-gen console refresh and how "we don't need to do incremental hardware for our own benefit."
Microsoft Gaming CEO Phil Spencer acknowledges expectations of an Xbox handheld, confirming that the company does intend to release one.
A next-gen Xbox handheld in development?
Xbox and Halo will both be celebrating their 25th anniversary in 2026, and Microsoft says it has plans in place to commemorate the same.
Microsoft will pair a traditional Xbox Series X home console successor with a handheld device similar to the Steam Deck, it's claimed.
Microsoft's streak of layoffs is reportedly set to continue, following nearly 2,000 in January and studio closures this past May.
Spencer also suggests that a hypothetical Xbox handheld would likely run games natively, rather than stream them through the cloud.
The System Shock remake developer could reveal a remaster for Computer Artworks' 2002 survival horror third-person shooter.
Microsoft has previously confirmed that work is already underway on the next generation of Xbox consoles.
This comes shortly after Microsoft's FTC court case documents revealed a project named DOOM Year Zero being in the works at id Software.
Xbox boss Sarah Bond talks about Microsoft's decision to shut down studios, and how it's meant to help Xbox in the long term.
In an internal email, Xbox president Sarah Bond reiterated the focus on "delivering the biggest technological leap ever in a generation."
"Nobody would blink twice if I said, ‘Hey when you’re using a PC, you get to decide the type of experience you have," says Phil Spencer.
Microsoft Gaming CEO Phil Spencer said last year that there was no need for an Xbox handheld in the market, owing to devices such as the Steam Deck.
Development kits of new Xbox hardware might be on the horizon, if a recent Korean certification is anything to go by.
Phil Spencer added that he's "very proud of the work that the hardware team is doing, not only for this year but also into the future."
Xbox president Sarah Bond says the company is "invested in the next-generation roadmap." However, a reveal could be a ways off.
Activision Blizzard games will soon start coming to PC and Xbox Game Pass, starting with action RPG Diablo 4.
The new floating Xbox controller and Xbox Series S console pay homage to the upcoming movie, Dune: Part Two.