After more than a decade of speculation, Microsoft has officially entered the handheld gaming market with the announcement of its first portable Xbox console: the ROG Xbox Ally.
Developed in collaboration with technology company Asus, the device will allow Xbox Game Pass subscribers to play hundreds of games on the go, offering native gameplay, cloud streaming, and remote access to consoles at home. The new console is scheduled for release at the end of 2025, though pricing details remain under wraps.
Rumours of a handheld Xbox have persisted for years, with Microsoft reportedly launching—and abandoning—several prototypes over the last decade. The company’s move comes just days after the release of Nintendo’s Switch 2, and follows the success of similar portable gaming devices like Valve’s Steam Deck.
With native support for Game Pass—a service boasting over 34 million subscribers—Microsoft hopes to stand out in a competitive market that has already embraced mobile and hybrid gaming.
The new handheld will come in two models: the ROG Xbox Ally and the more powerful ROG Xbox Ally X. Both feature a 7-inch 1080p display and run on Microsoft’s Windows operating system, which allows access to third-party game platforms like Steam and EA Play.
The base model includes 16GB of RAM and 512GB of storage, while the “X” version doubles both specs and adds a stronger processor and larger battery. However, this enhanced performance comes at the cost of portability—with the devices weighing in at 670g and 715g respectively, making them heavier than the new Switch 2, which weighs 534g.
“Whether you’re at home or on the go, your favorite games should follow you,” said Roanne Sones, Xbox’s Head of Gaming Devices. “Because these handhelds run Windows, you have access to games you can’t get elsewhere.”
While pricing remains a mystery, the Xbox Ally will likely compete with devices such as the Steam Deck, which ranges between £349 and £569, and the Switch 2, currently retailing at £395 in the UK.
During Microsoft’s showcase event, the company announced that 17 new titles will launch on Game Pass PC and Ultimate on day one, including eagerly awaited games like Tony Hawk’s Pro Skater 3+4, Ninja Gaiden 4, and Outer Worlds 2.
The next instalment in the popular Call of Duty franchise, Black Ops 7, was also confirmed as a day-one Game Pass release. Despite a previous deal between Nintendo and Activision, there was no mention of a Switch 2 version at the event.
Another fan-favourite announcement was the official reveal of a Persona 4 remake, titled Revival. The beloved role-playing game, first released in 2008 for PlayStation 2, is being remade by Sega and Atlus, although no release date has been given.
As the handheld console race heats up, Microsoft is betting that a mix of Game Pass value, PC-level flexibility, and brand power will be enough to carve out its space in the rapidly evolving gaming landscape.
