A new player is stepping into the handheld gaming arena. Microsoft and Asus are teaming up to introduce the ROG Xbox Ally. This device is designed to give users a console-like experience on a smaller screen. The ROG Xbox Ally looks different from other handhelds. It has a unique design that mimics a typical Xbox controller. This includes grips on either side and face buttons in the familiar Xbox colors: red, blue, green, and yellow. The d-pad, however, is similar to older ROG devices. The screen is a 7-inch IPS LCD display. It supports 120 Hz refresh rates and VRR, which is variable refresh rate. This means the screen can adjust its refresh rate to match the content being displayed. It makes for smoother gameplay.

Microsoft claims it has improved the Windows experience for smaller screens. The Xbox app and Xbox Game Bar have been tweaked for easier navigation with thumbsticks. Users can access games from various launchers, including Steam, Epic Games Store, and GOG. The device boots directly into the Xbox app. But, just like SteamOS, users can hit a button to switch to the desktop version of Windows. Microsoft also claims it has eliminated background tasks. This is to boost performance, improve battery life, and make it easier to jump into a game.

The specs of the ROG Xbox Ally include 16GB of RAM and 512GB of storage. The chip is an AMD Ryzen Z2 A. This is a special APU designed for the Xbox handheld. It is based on the Zen 2 chip architecture with 4 cores and 8 threads. The chip has a configurable TDP between 6W and 20W. This means it can draw more power for higher-end games. The Steam Deck, a competitor, maxes out at 15W. More powerful handhelds can go up to 30W or 40W. The ROG Xbox Ally is geared toward gaming at a 720p resolution. This is similar to the Steam Deck’s screen.

There is a more premium version called the ROG Xbox Ally X. It includes 24GB of RAM and a 1TB SSD. It runs on the AMD Ryzen Z2 Extreme, a more powerful Zen 5-based chip. This chip is the sequel to what powered last year’s Asus ROG Ally X. The ROG Xbox Ally X is designed for gaming at 1080p natively. It can take full advantage of the 120 Hz refresh rate IPS display. However, we’ve only seen it in action in a few demos. The lower-end Xbox handheld is geared for less demanding titles and game streaming. This is mostly through Xbox Game Pass.

Windows-based handhelds tend to cost more than those with SteamOS. The Steam Deck OLED, for instance, starts at $550 for a version with 512GB of storage. The Lenovo Legion Go S, another SteamOS-based handheld, starts at $600. The same handheld PC with Windows costs over $700. This extra cost can be attributed to Windows licensing fees. SteamOS is based on a Linux distro. It is made to direct users toward Valve’s digital storefront. Valve has every reason to keep that operating system cheap. Microsoft will have to compete on price. Especially when considering the Nintendo Switch 2. The original Switch was one of Nintendo’s best-selling devices ever. Its $450 sequel is set to hit higher expectations than all other major handheld PCs combined.

The Steam Deck is still the best seller. However, analyst firm IDC suggested that total handheld PC shipments for 2025 may be just 1. 9 million. Nintendo forecasted it would sell 15 million Switch 2s this financial year. This ends in March 2026. Microsoft is going to be squeezed between the two dominant handheld makers. SteamOS has already proved it offers better performance on handhelds than the same device with Windows. That OS is now compatible with any handheld running an AMD chip. This is why Microsoft is pushing this new handheld-centric version of Windows so hard. Microsoft suggested it will push updates to other Windows-based handhelds in the future. There’s no release date for the Xbox handheld. However, hints suggest it could arrive before the holiday season at the end of the year. Meanwhile, the Steam Deck and Switch 2 will continue to reign supreme.

The New Xbox Handheld: Is It Worth the Hype?

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