Microsoft Sets Sights on Valve with New Xbox Handhelds

Microsoft has unveiled its inaugural Xbox co-branded handheld devices, the ROG Xbox Ally and Ally X, developed in collaboration with Asus, slated for release during the 2025 holiday season, with pricing details yet to be disclosed. The Xbox Ally is positioned as a versatile, value-driven device, while the Xbox Ally X is touted as a high-performance handheld for more discerning gamers, echoing the marketing strategy of Asus' existing ROG Ally and Ally X handhelds, both of which utilize AMD processors. These Windows 11-enabled handhelds feature Xbox-branded buttons, a gaming-centric interface, and an aggregated library feature that consolidates players' software from various PC storefronts, as well as the Xbox Game Pass subscription library. In addition to playing PC games natively, the two handhelds can stream console libraries via Xbox Cloud Gaming and Remote Play. The interface is reminiscent of Xbox consoles from the past decade, with the 'Xbox full screen experience' optimizing the Ally and Ally X specifically for gameplay functionality, deferring non-essential tasks to allocate more resources to gaming. The contoured grips were designed with the principles of Xbox's wireless controllers in mind, and accessibility features from Xbox and Windows will be integrated into the handhelds. Xbox Play Anywhere, allowing a single game purchase to function across PC, console, and cloud gaming, will also be available on these devices. Each handheld features a dedicated Xbox button to access the Game Bar and instantly switch between apps and games. The launch territories for the Xbox Ally and Ally X include Australia, Belgium, Canada, Denmark, Finland, France, Germany, Ireland, Italy, Japan, Korea, Mexico, the Netherlands, New Zealand, Norway, Poland, Portugal, Saudi Arabia, Singapore, Spain, Sweden, Switzerland, Thailand, Turkey, the United Arab Emirates, the United Kingdom, and the United States, with other territories where ROG Ally products are currently available to follow. Microsoft's messaging suggests that the company is targeting players who value seamless access to their game libraries across devices. For players with both a PC and Xbox console, plus a Game Pass subscription, the ability to sync save data between devices is a significant advantage. The inclusion of Windows 11 is crucial, as it enables Xbox to extend its ecosystem and offer a more versatile gaming experience. Microsoft's announcement appears to be targeted at Valve, with the company highlighting the benefits of Windows and the ability to access games from multiple storefronts. The Steam Deck, which runs on Linux-based SteamOS, is limited in its ability to install and run games from other storefronts, and is only available for purchase from Steam. Microsoft sees an opportunity to offer a more comprehensive device to PC players, while also courting its existing console audience with the Xbox branding. The partnership between Microsoft and Asus allows Xbox to leverage Asus' trust with PC gamers, accelerate its entry into the market, deepen the integration with Windows and Xbox services, and counter the growing influence of Valve's handhelds. The key unknown is the price, with the cheapest Steam Deck model retailing for $399, and the original ROG Ally launching at $600 before dropping in price. If priced reasonably, Xbox could attract both its existing console players and PC users enticed by a Windows handheld tailored for games.