Insider KeplerL2 reported that the corporation curtailed the project due to AMD's requirements:
«Microsoft canceled the release of the portable console because AMD demanded a minimum of 10 million devices under the contract!
The release of the portable console has been canceled because AMD demanded a commitment to produce more than 10 million devices to justify the creation of a specialized SoC. But since Steam Deck has only sold 5 million devices, and ASUS ROG/Lenovo Legion only 1–2 million, Microsoft didn't want to take the risk.
AMD needs a commitment to justify R&D expenses»
There are almost no details about the console, as the project was in its early stages. The device was supposed to use solutions from ROG Ally and receive a separate chip from AMD. But the parties failed to agree, and Microsoft preferred to shut down development rather than order a huge number of processors for which there would be no use later.