Microsoft and ASUS team up to push Xbox gaming into the handheld space, but some questions are still left unanswered.
The wait is almost over for Xbox fans curious about Microsoft’s move into the handheld market. We are finally getting news on the long-awaited partnership between Microsoft and ASUS, getting an inside view of the specs, pricing, and a release date.
If you care about handhelds, October 16th is the day you will be excited for. That’s when both the standard Xbox Ally and the Xbox Ally X are set to launch. ASUS is working on hardware, and Microsoft is on the software side of things. On the surface, even if it seems like an unlikely duo, they pack quite the punch, as this mini-console is pitched as the very first Xbox-collaborated handheld.
The base model, the Xbox Ally, is the sleek white version. It comes packed with an AMD Ryzen Z2 processor, 16 GB of RAM, a 512 GB SSD, and a 60 Wh battery. Nothing groundbreaking, but enough to handle a wide range of PC and Xbox games on the go.
The ROG Xbox Ally X, however, is the real deal. This upgraded version runs on the new Ryzen AI Z2 Extreme chip, boasts 24 GB of RAM, doubles the storage to a 1 TB SSD, and ups the battery to 80 Wh. It’s the performance-focused big brother to the Xbox Ally.
On the software side, Microsoft has had their hands full, making as much of a console-like experience as possible for the handhelds. When you boot up either handheld, you’re dropped into a full-screen Xbox interface that loads only what’s necessary for gaming.
Microsoft claims this cuts out background processes and saves about 2 GB of system resources. They’ve also introduced a new marketing term, “handheld compatibility,” which refers to games that have been tested to run smoothly on the Ally devices. According to Microsoft, thousands of titles have already passed their tests. Thank you, Microsoft, but we gamers will take over from here.

The Xbox Ally X also comes with a few AI-powered perks thanks to its upgraded chip. One standout is auto super resolution, which upscales games that don’t support higher resolutions, making them look sharper on the handheld’s display.
Another neat touch is automatic highlight reels that capture your best gameplay moments without you having to hit record. It’s a small addition, but clearly they have played their cards right, keeping in mind social media’s importance. Money talks, and it’s not only talking but also threatening—to make you broke. Official pricing is yet to be disclosed by Microsoft, but leaks online have given us a pretty solid idea of what to expect.
While placeholder listings briefly had the systems priced at a whopping $10,000, the real numbers appear to be $550 for the standard Ally and $900 for the Ally X. Although its rumored 720p display may worry some, we think the white Ally is fairly priced at $550, given the current market. The Ally X, meanwhile, at $900 it’s definitely steep.
A common complaint is game availability. While thousands of PC games are said to be compatible, the situation with Xbox-only titles is still clouded by uncertainty. Some games, especially older backwards-compatible ones from the original Xbox and Xbox 360 era, don’t seem to work on the Ally devices. Instead, players will need to rely on streaming.

If you are someone who has spent years building a library of classics across multiple generations, we send our condolences because Microsoft’s approach to game compatibility has been a thorn in the flesh for a while now, and this move into handhelds shows just how much work they still have left to do.
Despite those concerns, the idea of Xbox gaming finally making the leap to a handheld device is exciting. For players who want to bring their Game Pass library with them on the go, or for those who have always wished for a Switch-like experience but tied directly to the Xbox ecosystem, the Ally devices could be a real game changer.
All eyes now turn to October 16th, when these handhelds officially launch. If Microsoft and ASUS can deliver, then the ROG Xbox Ally might just mark the beginning of a new era for Xbox gaming—one that finally breaks free of the living room.