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,

It took a few years of dealing with poorly optimized handheld PCs, but Windows Central reports Microsoft may finally be working on an Xbox handheld. The company could announce an Xbox-branded portable device as early as this year,