Microsoft and ASUS have announced a collaboration to deliver a new class of handheld: a Windows 11-based, Xbox-branded portable console that boots directly into an Xbox-style full-screen interface, for a more console-like experience. If it reminds you of the ROG Ally X, it’s not a coincidence, it’s pretty much a very similar hardware with a new shell.

They tell you it’s a Xbox, because it’s very hard to tell if you have seen the other dozens of portable PCs on the market.

it’s supposed to be released in the 2025 Holiday season (sometimes between October to December ?). Pre-orders are expected to start in August 2025.

Key Differences vs. the ROG Ally

You might wonder what the big deal is about. Is it just some repurposed ROG Ally with a Xbox logo? Well, yes, but there are some additional hardware and software features on top, so it’s a little more complex than that.

So you can expect potentially better ergonomics, but the console gets worse in terms of weight, mostly driven by a larger battery, but not just that since it’s even heavier than the ROG Ally X.

Xbox Anywhere and GamePass

Xbox Play Anywhere allows gamers to buy a single digital license for supported titles, for use on Xbox devices and Windows. Save data and achievements all also automatically synchronize between devices if Xbox Play Anywhere is supported, allowing you to take your games on the go.

In other words, it’s like Steam, where a single license means you can play your game on any machine that supports Steam, including your Steam Deck. And where Steam saves as supported, they are synchronized across devices too. The problem for Xbox Play Anywhere is that there’s only a small list of games that support such features (we are talking about a thousand or so), so this is nothing like Steam in terms of scale.

New Handheld Interface

The Xbox Ally is supposed to come with a slimmed down version of Windows 11 and a specific interface focused on gaming. You can see a preview of what is is supposed to look like.

You will be able to add games from other stores like GOG, Steam and the Epic Games Store, which means that most of their clients will probably also run in the background at the same time if you have such accounts. The interface will also show an icon to showcase from which store the game can be launched.

What to Make of it?

I asked you guys on Mastodon what you thought about such news.

Looks like most Linux gamers were not impressed, as their main reaction was “LOL” according to this survey. I somewhat share that opinion. While the Xbox Ally sounds like yet another potential competitor for the Steam Deck, there are some clear weaknesses in Microsoft’s approach.

• First, it looks like just another generic handheld. And frankly it looks awful with the strange protruding gamepad shape on each side. In which year are we here?
• Second, why is Microsoft scared to release their own device? They could have asked a third party to make it for them, and keep it 100% Microsoft branded. It seems like they don’t want to take any risk, opening the door to other Xbox handheld devices made by Lenovo or whoever. It’s going to be a confusing branding mess.
• The Play Anywhere initiative sounds good on paper but it only accounts for 1000 games or so. The Steam Deck verification system is going in the 15000 or more by now (I lost count).
• It’s not clear if the slimmed down Windows 11 version will make the device faster in any way. So far for the ROG Ally, installing the SteamOS image or even Bazzite led to high framerates than on the Windows version. Can Microsoft come back?
• I’m pretty sure this version of Windows 11 is not free, so this may impact the cost of the device as well in the end.
• It features a relatively higher pricing, which means it won’t be as affordable as the cheapest Steam Decks out there.

On the other hand, you could say that this is a stronger proposition than the previous Windows handhelds we have seen until now. This is much more recent hardware, there is a large battery, a better handheld UI, and you have Gamepass integration which is a selling point for many Windows gamers (when the Steam Deck was released many people were wondering if there would be a GamePass client for it). The allure of being able to play competitive games with anti-cheat may be there as well.

So, it’s hard to say how big of a success this will be, as well as how much Microsoft will push for it, marketing-wise, during the holiday season. It seems like the Switch 2 release, as well as the recent availability of SteamOS for non Steam Deck devices, may have forced them to play their hand in this year.

Since Valve has been quiet about the Steam Deck 2 for a while, late 2025 may be a good time to announce the successor - in case they are ready to release something in 2026. Or better, ahead of a Steam Deck 2 release, it might be a great opportunity to price down the Steam Deck permanently to offset any other handheld sales and expand their footprint with budget conscious audiences. They are probably gathering data as we speak on the Lenovo Legion Go S, and that may give them an indication if they have to move fast or rely on third parties to help SteamOS take off. As a joke, Valve could also announce the availability of SteamOS for the Xbox Ally in case it is not completely locked down at the firmware level.

It’s a very lively market, it’s moving fast, and it’s an exciting space to be in. Looking forward to seeing how the new competitor ends up shaping the market.