Microsoft has unveiled its inaugural Xbox co-branded handheld devices, the ROG Xbox Ally and Ally X, in collaboration with Asus. Set to launch during the holiday season of 2025, specific pricing details remain undisclosed. The Xbox Ally is positioned as a “great value” generalist device, while the Xbox Ally X aims to cater to high-performance gamers, mirroring the existing ROG Ally and Ally X offerings from Asus. Both handhelds are powered by AMD processors.
Equipped with Windows 11, these handhelds feature Xbox-branded buttons, a gaming-centric interface, and an aggregated library that consolidates players’ software from various PC storefronts, alongside the extensive subscription library of Xbox Game Pass. Beyond native PC gaming, users can also stream their console libraries via Xbox Cloud Gaming and Remote Play.
The user interface will be familiar to anyone who has engaged with an Xbox console over the past decade. The ‘Xbox full screen experience’ is designed to optimize gameplay functionality, prioritizing gaming performance by deferring non-essential tasks. Microsoft emphasizes that the contoured grips of the handhelds are inspired by the ergonomic principles of Xbox’s wireless controllers, ensuring comfort during extended gaming sessions. Accessibility features from both Xbox and Windows will be integrated into these devices, and the Xbox Play Anywhere initiative will allow a single game purchase to function seamlessly across PC, console, and cloud gaming platforms.
Each handheld is equipped with a dedicated Xbox button, enabling quick access to the Game Bar and effortless switching between apps and games.
The launch territories for the Xbox Ally and Ally X include a diverse range of countries: Australia, Belgium, Canada, Denmark, Finland, France, Germany, Ireland, Italy, Japan, Korea, Mexico, the Netherlands, New Zealand, Norway, Poland, Portugal, Saudi Arabia, Singapore, Spain, Sweden, Switzerland, Thailand, Turkey, the United Arab Emirates, the United Kingdom, and the United States. Microsoft has indicated that additional territories where ROG Ally products are available will follow suit.
The Windows factor
The introduction of the ROG Xbox Ally and Ally X aligns with Microsoft’s vision of providing players with a unified gaming library that transcends device boundaries. For gamers who own both a PC and an Xbox console, along with a Game Pass subscription, the seamless synchronization of save data is a remarkable feature. The addition of a handheld device extends this ecosystem, catering to dedicated users.
However, Microsoft’s ambitions extend beyond merely enhancing the existing ecosystem; the inclusion of Windows 11 is pivotal. The company highlights this aspect in its announcement, stating, “because these handhelds run Windows, you have access to games you can’t get elsewhere, so you can enjoy the full freedom and versatility of PC gaming all straight from the Xbox experience.” This statement suggests a direct challenge to Valve’s dominance in the handheld market.
The Steam Deck, which sparked the current trend of PC handhelds, operates on the Linux-based SteamOS. While it excels at running games from the Steam library, its flexibility for installing games from other storefronts is limited unless users are willing to modify the device. In contrast, Microsoft aims to provide a more versatile out-of-the-box experience for PC gamers while appealing to its existing console audience through the Xbox branding.
At first glance, the ROG Xbox Ally and Ally X may seem like mere iterations of the ROG Ally with an Xbox button. However, the strategic positioning presents an opportunity for Xbox to bridge the gap between niche PC handhelds and the mass-market appeal of Nintendo’s Switch, which has sold an impressive 150 million units compared to the Steam Deck’s estimated 4 million.
The relatively nascent market for PC gaming handhelds provides a unique landscape for Microsoft to explore. By offering two devices with distinct specifications, the approach mirrors Microsoft’s strategy with the Xbox Series S and X, a tactic not yet attempted by Nintendo or Sony in their handheld launches.
Piers Harding-Rolls from Ampere Analysis shared insights on Microsoft’s strategy, noting, “This partnership shows Microsoft’s increasing commitment to the PC gaming market, and its intent to protect and expand the role of Windows as the dominant gaming platform.” He further emphasized that Microsoft’s recent initiatives with Game Pass have increasingly targeted the PC gaming demographic, recognizing substantial growth potential in this sector compared to traditional console markets.
Harding-Rolls believes that collaborating with Asus enables Xbox to leverage the latter’s credibility among PC gamers, facilitating a quicker market entry while deepening integration with Windows and Xbox services. As of the end of 2024, sales of Windows PC handhelds reached approximately 1.2 million units.
The pivotal question remains: what will the pricing structure look like? The entry-level Steam Deck is priced at 9, while Asus’s original ROG Ally debuted at 0 before a price reduction. If Microsoft can position its offerings competitively, it may attract both its loyal console players and PC gamers drawn to a Windows handheld tailored for gaming. However, with home console prices on the rise, and given the anticipated specifications and capabilities of the Xbox Ally X, it is unlikely to be budget-friendly.
With the recent launch of the Switch 2, the announcement of these new handhelds adds an intriguing dynamic to the handheld gaming market, particularly as the PS5 continues to dominate the home console arena. Microsoft’s decision to pursue a different competitive strategy with its new hardware is poised to reshape the landscape in exciting ways.
