ASUS and Microsoft unveiled two handheld gaming devices during the Xbox Games Showcase, marking the software giant’s first foray into portable console hardware as competition intensifies following Nintendo Switch 2’s recent launch.
The ROG Xbox Ally and ROG Xbox Ally X will arrive during the 2025 holiday season in select markets, with additional regions to follow. Both devices feature 7-inch displays and AMD’s latest Z2-series processors, though Microsoft has yet to disclose pricing details.
The partnership leverages ASUS’s Republic of Gamers brand expertise with Microsoft’s Xbox ecosystem. The devices run Windows 11 but feature a redesigned Xbox interface that disables background processes to free up to 2GB of RAM for gaming and reduce power consumption by one-third.
Players can access games from multiple storefronts including Xbox, Steam, Battle.net, GOG and Ubisoft Connect, while Xbox Game Pass subscribers can stream titles through cloud gaming. The handhelds include Xbox-style controls with impulse triggers on the premium model and hall effect triggers on the base version.
The announcement comes just days after Nintendo Switch 2 launched globally on June 5 at US$450, intensifying competition in the handheld gaming market. The Switch 2 attracted significant demand, with 2.2 million people applying for purchase lotteries in Japan alone.
For ASUS, the collaboration represents an opportunity to expand beyond its current ROG Ally lineup. The Taiwanese manufacturer previously estimated that its gaming handheld series could contribute NT$5-10 billion (US$156-312 million) per quarter to revenue, according to company statements.
Industry analysts expect pricing between US$500-800 for the Xbox Ally models, potentially positioning them as premium alternatives to Nintendo’s offering. Microsoft plans to announce detailed pricing and availability in the coming months.
