Microsoft Unveils New Xbox-Branded Handheld Gaming Device

Microsoft has announced the release of a new handheld gaming device, the ‘ROG Xbox Ally,’ co-developed with ASUS’ ROG division. This device, which is both Windows-powered and Xbox-branded, represents a significant step in the company’s strategy to expand its gaming offerings to portable formats. The device comes in two variants, the ROG Xbox Ally and ROG Xbox Ally X, each with distinct hardware specifications and storage capacities. The announcement coincides with Nintendo’s Switch 2 achieving a record 3 million unit sales, highlighting Microsoft’s response to the competitive landscape in the gaming industry.

Working with ASUS’ ROG division, Microsoft has developed a device that weighs more than the Nintendo Switch 2, and is marginally heavier than the Steam Deck, according to reports by Engadget. However, the device features more ergonomic grips compared to the Nintendo Switch 2 and the Steam Deck, which are known to be uncomfortable for some users. The ROG Xbox Ally and ROG Xbox Ally X are available in two variants, with the latter offering more powerful hardware and larger storage capacities. Both devices will be available this holiday season, though pricing details have not been revealed. The ability to play games from leading PC storefronts, including Battle.net and others, is a key selling point of the device. Additionally, the integration of Game Pass and support for the Xbox Play Anywhere initiative offer an ecosystem that allows users to play across multiple devices seamlessly.

Microsoft has emphasized that the device is not limited to playing Xbox games only. Users can also access games from other PC storefronts, which expands the device’s versatility. The inclusion of a dedicated physical Xbox button allows for easy access to the Game Bar overlay, enabling users to switch between apps, games, and settings with ease. Furthermore, the device supports game modding, which is a significant feature for hardcore gamers. The Xbox Ally is powered by the AMD Ryzen Z2 A Processor, with 16GB of RAM and 512GB of SSD storage, while the Xbox Ally X features the AMD Ryzen AI Z2 Extreme processor, 24GB of RAM, and 1TB of storage. Both devices include a microSD card reader, eliminating the need for proprietary storage solutions. The presence of HD haptics and the ability to output video to a TV or monitor through two USB-C ports with DisplayPort 2.1 and Power Delivery 3.0 support further enhance the device’s functionality.

Microsoft’s decision to enter the handheld gaming market is seen as a response to the success of the Steam Deck and the competitive landscape in gaming. The Verge has noted that Microsoft has been gradually improving its Xbox app and Game Bar for Windows over the past few years to enhance the handheld experience. Roanne Sones, corporate vice president of gaming devices and ecosystem at Xbox, highlighted the importance of this device in pushing the development of Windows for handheld use. Microsoft is promising that this is not just a superficial update, but rather a significant improvement to the platform. Early testing has shown that the device can provide around 2GB of additional memory to games when running in full-screen mode, demonstrating the company’s commitment to enhancing performance and user experience.

As the gaming industry continues to evolve, Microsoft’s entry into the handheld market with the ROG Xbox Ally represents a strategic move to capture a larger share of the portable gaming sector. This device is expected to compete directly with both the Nintendo Switch 2 and the Steam Deck, offering a unique combination of Xbox and PC gaming capabilities. The financial implications of this launch, however, remain to be seen, with Microsoft’s ability to compete in this space largely dependent on consumer reception and the effectiveness of its ecosystem integrations.