by: The Washington Eye
After a decade of speculation, Microsoft has finally entered the handheld gaming market with the launch of the ROG Xbox Ally and ROG Xbox Ally X, developed in partnership with ASUS. This marks a historic shift for Xbox, which has long focused on traditional consoles and cloud-based gaming. Unveiled at the Summer Game Fest on June 8, 2025, the new devices will hit the market during the 2025 holiday season, signaling Microsoft’s serious commitment to expanding the Xbox ecosystem beyond living rooms and desktops.
The journey toward a handheld Xbox device has been long and filled with speculation. As early as 2023, reports emerged about internal projects like “Project Kennan” and “Bayside,” which hinted at a handheld future. Xbox head Phil Spencer confirmed that Microsoft had been experimenting with prototypes for years, collecting feedback through user surveys, especially from Game Pass subscribers. However, the company remained cautious, citing the need to perfect cloud streaming and UI integration before launching a new device category. This cautious approach appears to have paid off, as Microsoft now offers a handheld platform backed by years of technical refinement and user data.
The new handhelds are available in two models: the standard ROG Xbox Ally, featuring an AMD Ryzen Z2 chip, and the more advanced ROG Xbox Ally X, powered by the Ryzen Z2 Extreme chip, capable of delivering roughly 50 trillion operations per second (TOPS) thanks to a built-in AI neural processing unit. Both devices run a customized version of Windows 11, designed to streamline handheld gaming with a full Xbox-style UI, quick access to Game Pass, and compatibility with PC gaming platforms such as Steam, Battle.net, and Epic Games Store. This effectively turns the device into a hybrid gaming PC and console.
Design-wise, both handhelds retain familiar Xbox aesthetics, with ergonomic grips, responsive triggers, and a dedicated Xbox Guide button. The Ally X features a 7-inch 1080p display praised for its clarity and responsiveness. However, early reviews have flagged the weight of the Ally X as a concern, with some users noting hand fatigue after extended gameplay. This could affect long-term usability, especially when compared to lighter devices like the Nintendo Switch.
With pricing rumored to range between $499 and $999 depending on the model, Microsoft is clearly targeting the premium handheld segment. But its greatest advantage lies not in hardware, but in integration. These devices are a physical manifestation of Microsoft’s “Xbox Anywhere” strategy, allowing users to download games, stream via the cloud, and even play remotely from their home Xbox consoles. The handhelds also support multitasking, including access to Discord, Twitch, and Microsoft Office, further blurring the lines between console and PC.
This launch places Microsoft in direct competition with existing handheld giants. Nintendo recently launched the Switch 2 with enhanced graphics and a strong first-party lineup, while Valve’s Steam Deck remains a dominant player in portable PC gaming. ASUS, ironically now Microsoft’s partner, was already producing ROG-branded handhelds. But Microsoft believes its deep Game Pass integration and Xbox-first software experience offer a competitive edge.
