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Microsoft Enters Handheld Gaming Race with New Xbox Ally Devices, Challenges Steam Deck and Switch 2


Xbox Handheld: After years of speculation and several failed prototypes, Microsoft is officially stepping into the handheld gaming market with the launch of its new ROG Xbox Ally and ROG Xbox Ally X devices.

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Designed in collaboration with Asus, these handhelds are Microsoft’s most serious attempt yet to bring a console-like Xbox experience to portable gaming—directly challenging the Valve Steam Deck and Nintendo’s new Switch 2.

At the core of these new devices is a brand-new, fullscreen Xbox interface built specifically for portable use. Instead of booting into the standard Windows desktop, the Xbox Ally models open directly into a console-like UI that puts games front and center.

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The clean, controller-optimized interface allows players to browse and launch titles from Xbox Game PassSteamBattle.net, and Epic Games Store—all in one place.

“Whether you’re at home or on the go, your favorite games should follow you,” said Roanne Sones, Xbox Head of Gaming Devices. “We’ve designed these handhelds to deliver the freedom of PC gaming with the familiarity of Xbox.”

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What’s Inside the Xbox Ally and Ally X?

Both devices feature a 7-inch 1080p 120Hz display with VRR support and come equipped with AMD’s new Ryzen Z2 chips, designed for handheld gaming performance:

Xbox Ally:

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  • Ryzen Z2 A chip
  • 16GB RAM
  • 512GB storage
  • Targeted at 720p gameplay

Xbox Ally X:

  • Ryzen Z2 Extreme chip
  • 24GB RAM
  • 1TB storage
  • Designed for 900p–1080p performance
  • Bigger battery for longer play sessions

Both devices weigh between 670g and 715g, slightly heavier than the Switch 2, which comes in at around 534g, but Xbox promises a more powerful and flexible gaming experience in return.

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A New Xbox Experience, Optimized for Handhelds

The handhelds run a customized version of Windows but skip the typical desktop environment. Instead, users are dropped into a streamlined Xbox UI that saves nearly 2GB of RAM, which is redirected toward improving game performance. The new setup also includes:

  • Enhanced Xbox Game Bar
  • Controller-friendly multitasking tools
  • On-the-go system settings for battery, Wi-Fi, and more
  • Native Game Pass integration with cloud, local, and remote play

Microsoft also announced it will introduce a “Verified for Handheld” badge to help players identify which titles are optimized for portable play—similar to Steam Deck’s compatibility labeling system.

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Game Pass Advantage and New Game Reveals

For Microsoft’s 34 million Game Pass subscribers, the Xbox Ally offers a major advantage: instant access to a massive game library from day one. At the company’s showcase event, Microsoft announced 17 new games coming to Game Pass Ultimate and PC on day one, including:

  • Call of Duty: Black Ops 7
  • Tony Hawk’s Pro Skater 3+4 Remake
  • Ninja Gaiden 4
  • The Outer Worlds 2
  • Persona 4 Revival (a long-awaited remake of the PS2 classic)

While no release date was given for Persona 4 Revival, its announcement stirred excitement across the fanbase.

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Xbox Handheld Pricing and Availability

Microsoft has yet to confirm pricing or an exact release date, though the devices are expected to hit the market by late 2025. With Switch 2 retailing at $399 and Steam Deck ranging from $399 to $649, industry insiders expect the ROG Xbox Ally to fall within a similar bracket.


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