Xbox Handheld: Microsoft’s Big Move into Portable Gaming

Microsoft has officially entered the handheld gaming arena with the Xbox handheld, unveiled during the Xbox Games Showcase 2025. Partnering with ASUS’s ROG brand, the Xbox handheld brings the power of Windows 11 and Xbox gaming to a portable form factor, marking a significant leap toward Xbox Anytime access across platforms. Here’s how this exciting new device stacks up against other similar handheld consoles like the Nintendo Switch 2.

What Is the Xbox Handheld?

The Xbox handheld features two models—the standard ROG Xbox Ally and the high-end ROG Xbox Ally X. These devices are essentially Windows 11-powered gaming PCs repackaged with Xbox-centric UI and button mapping, including a dedicated Xbox button and console-grade impulse triggers for controller-like responsiveness.

Both models offer:

• A 7” 1080p 120Hz display with VRR and Dolby Atmos audio
  
• Optimized Xbox app for handheld workflows, including controller overlays for quick access.
  
• Support for Xbox Game Pass Ultimate, Xbox Game Pass PC, and Xbox Cloud Gaming
  
• Full compatibility with Steam, Epic Games, and PC storefronts—making it a versatile gaming device.
  

What Is the Price of the Xbox Handheld?

Though Microsoft hasn’t disclosed official pricing yet, insider reports and industry speculation point to a launch window this holiday season. The base model is expected to fall between $499–$599, while the higher-tier Ally X variant could reach $799–$999.

The more affordable ROG Xbox Ally parallels the $599 mark set by devices like the Steam Deck and Lenovo Legion Go. Meanwhile, the ROG Xbox Ally X is speculated to feature 24GB RAM and high-end AMD Ryzen Z2 Extreme chips—making it a powerhouse that might justify the upper-end pricing.

How It Compares to the Xbox Series X

While the Xbox Series X remains Microsoft’s flagship home console—gearing toward 4K resolution and console-exclusive performance—the Xbox handheld brings portability and flexibility. It does this by:

• Offering comparable RAM (16GB or 24GB) that rivals or exceeds what’s in an Xbox Series X
  
• Running Windows 11, enabling full PC gaming support plus Xbox experiences.
  
• Bridging ecosystems, allowing players to continue Xbox titles, cloud games, and PC content—all in a handheld
  
• Complementing rather than replacing the Xbox Series X, as Microsoft focuses first-party efforts on software and next-gen consoles.
  

The Road Ahead: Launch Timeline and Ecosystem Fit

Launch is slated for Holiday 2025, with roll-out across key global markets including the U.S., UK, Japan, and others. The ROG Xbox Ally devices carry the codename “Project Kennan” and reflect Microsoft’s strategic pivot to leverage Windows handheld platforms instead of building in-house hardware.

Microsoft has paused development on a first-party Xbox handheld until a future console generation arrives. Instead, investing in Windows optimization signals a hybrid approach: support partner hardware now while quietly preparing for in-house devices later.

Conclusion

The Xbox handheld represents a bold step in Microsoft’s gaming strategy—bringing the power of the Xbox Series X experience to a highly portable Windows-based system through the ROG Xbox Ally and Ally X models. With cloud integration, full PC storefront access, and cutting-edge display and controller enhancements, this handheld is more than just another compact console—it’s a robust PC-gaming powerhouse designed for mobile play.

As we approach the Holiday 2025 launch window, pricing between $499–$999 and full software integration will be key to its success. While it may not reach native Series X performance, it delivers an Xbox and PC gaming experience that’s flexible and portable. For gamers wanting big-screen-quality gameplay on the go, the Xbox handheld promises to fill a unique, ambitious niche.

About the Author: Sarah Zimmerman is a seasoned crypto and Web3 news writer passionate about uncovering the latest developments in the digital asset space. With years of hands-on experience covering blockchain innovations, cryptocurrency trends, and decentralized technologies, she strives to deliver insightful and balanced news that empowers her readers. Her work is dedicated to demystifying complex topics and keeping you informed about the ever-evolving world of technology.