top of page

Microsoft Reveals Xbox Ally Handhelds to Challenge Steam Deck


Xbox Ally Handhelds
Xbox Ally

After months of speculation, Microsoft has officially entered the handheld gaming arena with the announcement of two new devices: the Xbox Ally and the more powerful Xbox Ally X.

Developed in collaboration with ASUS, these Windows-based handhelds are designed to run virtually any PC game while offering the seamless user experience and ecosystem integration Xbox fans expect.


What Are the Xbox Ally and Ally X?

The Xbox Ally lineup includes two models catering to different segments of the portable gaming market:

  • Xbox Ally: Powered by AMD's Ryzen Z2 A processor (Zen2 architecture, 12 RDNA2 graphics cores), this model features 16GB LPDDR5X-6400 RAM, a 512GB SSD (upgradeable), and a 60Wh battery. It weighs 670g.

  • Xbox Ally X: A premium variant using the Ryzen AI Z2 Extreme (8 cores, 16 threads, 16 RDNA3.5 graphics cores), it boasts 24GB of faster LPDDR5X-8000 RAM, a 1TB SSD, and a larger 80Wh battery, weighing 715g.


Both devices feature a 7-inch 1080p IPS display with a 120Hz refresh rate, 500 nits brightness, and FreeSync Premium. The screens are protected with Gorilla Glass Victus and come with an anti-reflective coating for better outdoor play.


Performance: A New Standard for Handheld Gaming?

Compared to Valve’s Steam Deck, the Xbox Ally X is a serious upgrade on paper. The Steam Deck’s custom APU uses a 4-core Zen2 CPU and 8 RDNA2 GPU cores—half the graphics power of the Ally X. Microsoft claims the device runs upcoming titles like Gears of War at stable 1080p 60fps, a big leap from the 800p standard of the Steam Deck.


  • Xbox Ally: Targeting 720p gaming, suitable for casual or budget-conscious players.

  • Xbox Ally X: Aimed at 900p to 1080p gameplay, offering better performance and visuals.


A Custom Windows 11 Experience Built for Handhelds

One of the standout features of the Xbox Ally is its custom-optimized Windows 11 OS. Microsoft has fine-tuned the OS to reduce background processes, reclaim up to 2GB of RAM, and cut idle power usage by a third.


The handheld UI is redesigned for full controller-based navigation, removing the need for a keyboard or touchscreen for everyday use.


This approach marks a serious upgrade over current Windows handhelds that often struggle with touch-unfriendly interfaces and bloated software experiences.


Play Anything, Anywhere

Unlike traditional Xbox consoles, the Xbox Ally and Ally X can run any Windows-compatible PC game, giving players access to libraries from:


They also support Xbox Play Anywhere, meaning over 1,300 titles can be played across Xbox consoles and Windows PCs with a single purchase — and with cross-save support.


Cloud gaming via Xbox Game Pass Ultimate is also integrated, letting users stream games without installing them. You can even remote play from your home Xbox console, further expanding how and where you game.


Microsoft Enters a Crowded, Competitive Market

Though the handheld PC gaming market is still niche—estimated between 1.5 and 5.3 million units sold in 2024—it's growing fast. Analysts predict it could hit 13 million units by 2028. With the Xbox brand behind it, Microsoft’s entry may supercharge that growth.


However, competition is heating up. Valve’s Steam Deck remains popular, ASUS already tested waters with the ROG Ally, and Nintendo is the juggernaut in this space.


Release Timeline and Expected Pricing

Microsoft hasn’t officially announced pricing, but early expectations suggest:

  • Xbox Ally: Could be priced slightly above the Steam Deck’s $399 base model.

  • Xbox Ally X: Might land in the $699–$799 range, based on previous ASUS hardware.


Both models are slated for a Holiday 2025 launch, giving Microsoft and ASUS time to polish the software and prepare for a crowded Q4 gaming season.


Comments

bottom of page