The Article Tells the Story of:
- Microsoft’s Secret Handheld Project Is Finally Real: After decades of speculation, Microsoft confirms its first Xbox handheld console, launching in 2025 with Asus as its partner.
- Full Xbox Experience in Your Hands: The new ROG Xbox Ally and Ally X run Windows, offer a true Xbox interface, and let users stream or download games anywhere.
- Specs That Threaten Steam Deck and Switch 2: With up to 24GB RAM, 1TB storage, 120Hz HDR display, and AMD’s Z2 Extreme chip, this handheld isn’t just for casual play.
- Xbox Button, Impulse Triggers, Instant Wake – It’s Built for Real Gaming: The console feels like an Xbox controller, powers up instantly, and connects to TVs—making it a portable powerhouse.
Microsoft Confirms Xbox Handheld Launch in 2025
Microsoft has officially entered the handheld gaming market. At the Xbox Showcase, the company revealed its first Xbox-branded gaming handheld, developed in partnership with Asus. The device will launch during the 2025 holiday season under the name ROG Xbox Ally.
Two models will be available: the ROG Xbox Ally (16GB) and the ROG Xbox Ally X (24GB). Both models will run on Windows OS and feature the Xbox full-screen experience. Microsoft built the interface to eliminate unnecessary background apps and streamline gameplay.
The ROG Ally X will include features like Xbox Cloud Gaming, Xbox Remote Play, and a native game download option. Players will access their Xbox and PC libraries through a centralized hub, Armoury Crate SE, which also provides controls for power settings, display options, and device management.
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Xbox Ally X Delivers Powerful Specs and Xbox Features
The ROG Ally X is powered by AMD’s latest mobile chips. The standard version includes the Ryzen Z2A processor, 16GB RAM, and 512GB storage. The upgraded model comes with the Ryzen Z2 Extreme, 24GB RAM, and 1TB storage. Both devices will support 60 to 80 watt-hour batteries, offering extended playtime.
Microsoft and Asus designed the handheld to look and feel like an Xbox controller. It includes standard Xbox thumbsticks, impulse triggers, button layout, and a contoured grip that matches hand curves. The 7-inch 1080p IPS VRR screen supports 120Hz refresh rate and HDR, making it ideal for high-action games.
Early testers reported smooth gameplay on titles like Gears of War: Reloaded. The Xbox button lets users exit gameplay and jump directly to the Home or Library screen. The system supports Play Anywhere, allowing access to a unified library from Xbox, Game Pass, Battle.net, and other PC storefronts.
Microsoft also optimized the device for power efficiency. When the handheld enters sleep mode, it consumes only a third of its regular power. Players can resume gameplay instantly by pressing the Xbox button.
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Asus and Microsoft Promise Seamless Xbox Gaming Anywhere
Microsoft said the Xbox handheld is part of a long-term strategy to expand gaming beyond the living room. Sarah Bond, president of Xbox, said the company wants to grow the Xbox experience to support more devices and user habits.
Microsoft previously considered a handheld in the early 2000s. It scrapped the “Xboy” project because of competition with Nintendo’s GameBoy. But with a growing demand for mobile gaming, Microsoft decided to revisit the idea with help from Asus.
Roanne Sones, Xbox VP of gaming devices, said the collaboration helped Microsoft move faster. She said Asus brought hardware expertise, while Microsoft focused on software integration and ecosystem compatibility.
Asus VP Shawn Yen said “Ally” stands for “All your games,” reflecting the handheld’s compatibility across platforms. He also confirmed that the ROG Ally X will support XG Mobile docking with up to an RTX 5090 laptop GPU, turning the device into a full gaming PC when docked.
Jason Beaumont, Xbox VP of experience, explained that players wanted a simplified Windows-based interface for gaming. The Xbox full-screen mode was developed in response. It bypasses the traditional Windows UI and focuses only on gaming.
The Xbox handheld experience will offer real-time game compatibility checks, letting users know if their games are optimized for handheld mode. Microsoft says this will help players avoid poor performance or interface issues.
Microsoft’s Xbox Handheld Targets Steam Deck and Switch 2
The Xbox handheld will compete directly with the Nintendo Switch 2, Valve Steam Deck, and other Windows-based handheld PCs. But Microsoft claims its product offers a smoother experience because it combines Xbox’s full gaming system with PC-level flexibility.
The partnership with Asus is key. Microsoft says feedback from publishers and retailers pushed the company to partner with a third party. Asus already had experience with the ROG Ally line, which gave Microsoft a platform to build upon.
Dominique Gordon, senior product manager at Xbox, said the device was built to put gaming “front and center.” The team designed it to reduce system distractions and keep players inside the game.
Microsoft wants the Xbox handheld to serve users who want mobility without sacrificing performance. The Xbox Cloud and Remote Play features allow users to stream or download games depending on their internet connection or storage preference.
The Xbox handheld officially arrives in holiday 2025. With full Xbox compatibility, next-gen AMD hardware, and PC-level power, the ROG Ally X could change mobile gaming for Android and Windows users.