Microsoft and Asus Unveil Xbox Ally Handheld Devices: A New Challenger to Nintendo Switch

Microsoft has officially entered the handheld gaming arena, partnering with Asus to introduce two new portable devices: the ROG Xbox Ally and the Xbox Ally X.

Announced during the Xbox Showcase, these handhelds represent Microsoft's strategic push into portable gaming, positioning them as direct competitors to the Nintendo Switch and the upcoming Switch 2.

The Xbox Ally series leverages Asus’s successful ROG Ally hardware—a line of handheld PCs known for their robust performance and adaptability.

Microsoft’s collaboration now brings an Xbox-branded iteration to the market, aiming to integrate the best of both companies’ expertise in hardware and gaming ecosystems.

This move comes after months of speculation and various leaks, finally ending one of the gaming industry's most anticipated hardware reveals. There are two primary models: the standard ROG Xbox Ally and the high-performance Xbox Ally X.

The base Xbox Ally is equipped with an AMD Ryzen Z2 A processor, 16 GB of RAM, and 512 GB of onboard storage.

For gamers seeking higher performance and greater capacity, the Xbox Ally X boasts an AMD Ryzen AI Z2 Extreme chip, 24 GB of RAM, and a full 1 TB of storage.

This differentiation in hardware options allows the devices to cater to both mainstream and enthusiast demands, echoing established trends in the console market. Though the reveal trailer did not clarify whether all games run natively on these devices or primarily through cloud streaming, Microsoft emphasized that users can stream Xbox titles—underscoring the company’s evolving emphasis on cloud gaming and Game Pass.

With Xbox Game Pass, players will have access to a wide library of games that can be streamed directly to the handheld, supporting a flexible and versatile gaming experience.

Lighter, less graphically intensive titles are expected to run natively, taking full advantage of the device’s hardware capabilities. Microsoft’s pivot towards hardware that integrates their gaming services aligns with recent trends in the industry.

As the definition of 'Xbox' evolves beyond traditional consoles, the strategy signifies a broader shift toward multi-platform accessibility.

This new focus on branded, yet versatile hardware could attract a wider demographic of gamers, although the company continues to face challenges in developing breakout exclusive titles to rival Nintendo’s acclaimed first-party lineup. With the ROG Xbox Ally and Xbox Ally X, Microsoft and Asus are entering the competitive field of portable gaming at a moment when Nintendo’s Switch maintains significant market share.

The move signals both companies’ confidence in the future of handheld gaming and offers consumers greater choice as they navigate an increasingly diverse landscape.

Nintendo Switch Nintendo Microsoft Xbox Switch Asus X ROG Ally Xbox Ally Xbox Ally X AMD Xbox Game Pass