Xbox head honcho Phil Spencer told Bloomberg on Tuesday that "the expectation is that we would do something” when it comes to a handheld gaming device. Bloomberg says that Microsoft is working on prototypes and researching the market, but that Spencer says any retail device is still a few years out.

Microsoft Gaming CEO Phil Spencer has confirmed plans to develop an Xbox handheld console, aiming to compete in the mobile gaming market alongside Nintendo Switch.

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.

Xbox’s handheld device is in development, but Microsoft CEO Phil Spencer remains focused on optimizing the Xbox app.

Speaking to Bloomberg, the longtime Xbox executive addressed the ongoing speculation about whether Microsoft would hop into the current PC gaming handheld arms race. “ [The] expectation is that we would do something [in that category],

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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.