The ROG Xbox Ally is Microsoft’s big swing for PC gaming handhelds

We’ve seen it teased, we’ve seen it leaked, but the first “portable Xbox” (those quotes are doing a lot of work, yes) was revealed last night during Microsoft’s latest Xbox gaming showcase. As expected, it’s a co-op play with Asus, who essentially rebranded the ROG Ally with some Xbox flair. But make no mistake: despite the marketing that proclaims “This is an Xbox,” the ROG Xbox Ally is a handheld PC.

I appreciate that the line between console and PC is blurry, perhaps intentionally so thanks to Microsoft. But the ROG Xbox Ally and the more powerful, upgraded ROG Xbox Ally X are essentially third-generation Asus handheld PC designs. And just like the two previous versions, they’re running Windows 11 out of the box, offering a sharp distinction to competition like the SteamOS-powered Lenovo Legion Go S. But with both Microsoft and Asus cognizant of the issues handheld PCs have had around Windows, it’s not without some serious tweaks.

Asus

According to the promotional page, this version of Windows 11 has a “smoother, more intuitive interface” with a Steam Deck-style handheld UI set to launch by default upon booting up. That includes a refreshed Xbox Game Bar. Microsoft is also leaning into the work it’s done with Xbox Game Pass, highlighting the availability of plenty of Xbox-only games via streaming and its huge library of games available on both Xbox and PC with seamless progress via the Xbox Play Anywhere system.

“I don’t have to think about Windows, all I have to think about is my game,” says Anshul Rawat of Microsoft in a promo video. Of course, since it is running Windows underneath, the new design still has access to basically any local PC game—a notable weakness of SteamOS and the Steam Deck. Microsoft is also leaning on options for streaming, both via Game Pass and remote play to other PCs and Xbox consoles.

You can check out the very BWAH-infused trailer below:

How much this will improve the experience overall, we can’t say yet. Windows 11 still has a lot of stuff going on under the hood that can bog things down for the efficient APU hardware of handhelds.

And speaking of which, the ROG Xbox Ally is packing a lot of revised hardware compared to the Ally X of 2024. The base model (in white) gets a next-gen AMD Ryzen Z2 A processor, 16GB of LPDDRX-6400 RAM, and a 512GB SSD. The ROG Xbox Ally X in black (which is an upgraded SKU, not a fully separate design like the 2024 version) gets a Ryzen AI Z2 Extreme processor with an NPU, 24GB of RAM, and a 1TB drive.

Both get two USB-C ports (one of which is Thunderbolt 4-compatible for external graphics) and a microSD card slot. The base model has a 60 watt-hour battery while the Xbox Ally X gets 80 watt-hours—an odd choice since they appear to have identical shells. Note the RGB rings around the thumbsticks and the stripe on the back, both inherited from the original ROG Ally design.

Asus

Both are rocking a 7-inch IPS display with 1080p resolution and 120Hz refresh, just like the original Ally. But the shape and look of the device has seen some big revisions, most notably the distinct, chunky controller handles. There’s also a new face button with an Xbox logo, dedicated to the Xbox Game Bar. The Ally X, in addition to its beefed-up internals and black color scheme, gets haptic feedback on the controller triggers.

Both systems should land at retailers later this year with a general “Holiday 2025” arrival. How much will they cost? No idea. For context, the ROG Ally X from 2024 is currently $900 to $1,000 at Best Buy depending on configuration. Based on the hardware, I’d expect the new ROG Xbox Ally to be in the same ballpark… a heavy contrast to the Steam Deck, which starts at $400 and tops out at $650 with an OLED screen.