Microsoft is entering the handheld race, but it's not building a console
A look at how the ROG Ally Xbox Edition and Ally X compare to the Nintendo Switch 2.
Microsoft didn’t just show off new games at its 2025 Xbox showcase — it introduced two new handhelds. Built in partnership with Asus and based on the existing ROG Ally lineup, the new ROG Ally Xbox Edition and Ally X aren’t consoles in the traditional sense. They’re Windows 11 gaming PCs with Xbox branding, full Game Pass access, and room for Steam, Epic, and any other launcher you’d typically run on a desktop.
This marks Xbox’s first official step into handheld gaming, but it’s not the all-in-one console many had hoped for. Just last month, Microsoft put its first-party handheld plans on hold, citing the need to improve Windows 11’s gaming performance. Devices like the original Asus ROG Ally had already shown just how clunky the Windows experience can be on smaller screens.
That decision sparked Project Keenan: a behind-the-scenes initiative to bring Xbox software and services to third-party handhelds like Asus’s Ally lineup instead of building hardware in-house.
That said, the white Ally Xbox Edition starts at $650 (₦980K / ₹54,000 / €599) with AMD’s Z1 chip, 16GB RAM, and 512GB SSD. The black Ally X, however, bumps that up to $1,080 (₦1.6M / ₹90,000 / €999), with a Z1 Extreme chip, 24GB RAM, 1TB storage, and an 80Wh battery. Both devices feature a 7-inch 120Hz display and magnetic hall-effect joysticks.
Microsoft says they’ll be available globally during Holiday 2025, with North America and Europe getting first dibs. But availability in India and Nigeria hasn’t been confirmed yet.
It’s a different approach from the $449 Nintendo Switch 2, which leans on exclusive games, tighter user experience (UX), and a traditional console feel. Xbox’s bet here seems more open-ended: appealing to power users who want flexibility across ecosystems, like Steam or Epic, not just one platform.
But that freedom clearly comes at a cost.
Also, one has to wonder if Microsoft has indeed tweaked Windows to work better for handhelds (guess we'll find out soon enough). Still, by outsourcing the hardware risk to Asus and others, Microsoft gets to test the waters without going all-in.
And for players who’ve been waiting, it seems handheld gaming is now part of Xbox’s long game.
Oluwaseun Bamisile
