United Kingdom, June 13 -- Xbox's first-party handheld console is "essentially cancelled", its been claimed.

While Microsoft has been working with Asus for its ROG Xbox Ally and ROG Xbox Ally X portable devices, the company had also been developing its own in-house handheld, though The Verge's Tom Warren has now claimed the first-party device has been scrapped altogether.

In his report, Warren wrote: "I've heard from insiders that it's essentially cancelled as the company focuses on Xbox's new software platform.

"I still think we'll see next-gen Xbox hardware from Microsoft, but I also strongly believe we'll see multiple devices from PC makers like Asus that will also be considered next-gen Xbox consoles."

A few weeks ago, it had been...