Handheld Gaming PCs Surge In Demand As Game Studios Struggle With GenAI And Revenue

Advanced technology has always played an integral role in the evolution of video games and gaming companies are continually striving to improve gamers’ experiences.

Building up from the handheld devices of yesteryear to graphics-heavy gaming consoles—such as Microsoft’s Xbox and Sony’s PlayStation—and of course, desktops and laptops, video games have always been a cornerstone for innovation.

Are you still doubting this statement? GPUs (Graphics Processing Units) were originally made to speed up the creation of images and video and are at the core of gaming experiences.

The same GPUs are responsible for the wonderful and magical capabilities that come from generative artificial intelligence (GenAI) chatbots, as GPUs form a core component of training GenAI platforms.

Recently, Microsoft looked to utilize GenAI technology to enhance video game generation through a new model called Muse. Muse is being introduced as the world’s first World and Human Action Model (WHAM).

Essentially, Muse can generate complex gameplay sequences of several minutes of how a game would play out by only analyzing a snippet of gameplay from a human. The idea is to help developers with gameplay ideation.

This brilliant innovation didn’t go over well with gamers, who took to social media to convey their disappointment for numerous reasons—primarily that it was GenAI.

Under a video on YouTube (currently unlisted), users commented on their “disgust” of Xbox using “soulless” GenAI for game development. Among the general roasts, pot shots, and threats, people said they would rather pirate games than contribute to growing GenAI-built games.

One such comment reads, “How about you replace those expensive, good-for-nothing executives with AI and give the millions you saved to the employees who actually put their blood, sweat, tears, and passion into their projects?”

As per reports, the video gathered around 18k views and 1.5k dislikes.

Suffice it to say, GenAI has irked gamers, leading them to question the application of the technology in the gaming industry.

Talking about technology advancements that didn’t pan out in the gaming industry, the focus over the last few years has been on building games that utilize augmented reality (AR) and virtual reality (VR) headsets to deliver unique gameplay. Whether it finds its way into mainstream gaming is yet to be determined.

However, one that picked up is handheld gaming PCs.


Over the last three years, approximately six million handheld gaming PCs have been sold. From this, Valve’s Steam Deck has accounted for more than half of the devices sold—3.7 million to be exact—since its launch in 2022.

While these figures don’t spell out strong growth numbers, AMD's Head Of Gaming Marketing, Frank Azor, hailed the growth of handhelds going from virtually zero to six million in just three years as “amazing.”

Valve’s Steam Deck is powered by AMD’s APUs (Accelerated Processing Units), which are based on AMD's Zen 2 and RDNA 2 architectures.

While handheld devices enjoyed better sales, the gaming industry is witnessing cutbacks in other areas—video games.

Gamers have begun opting for proven titles over new purchases, leaving gaming companies in a dark space.

As such, a spokesperson for Warner Bros Discovery said it is shutting down three of its videogame development studios to boost profitability as the gaming market struggles. The studios facing the axe include Player First Games, Warner Bros. Games San Diego, and Monolith Productions.

The shuttering of Monolith Productions will also lead to the development of its “Wonder Woman” game to stop, for which the spokesperson said, “Our hope was to give players and fans the highest quality experience possible for the iconic character, and unfortunately this is no longer possible within our strategic priorities.”

The company will turn its focus to core franchises such as Harry Potter, Mortal Kombat, DC, and Game of Thrones.

Warner Bros’ pivot isn’t an isolated incident, as other gaming giants such as Microsoft and Sony have also closed offices to reduce costs.

What do you think will be the next big innovation in gaming technology? Do you think users will accept GenAI as a key resource in game development?

Let us know in the comments below!