Xbox & ASUS ROG Unveil Handheld Steam Deck Rival

Microsoft unveiled the ROG Xbox Ally and ROG Xbox Ally X during Xbox Games Show at Summer Game Fest 2025. Here's everything we know about these exciting new handheld devices.

Microsoft Announces Xbox Ally Partnership With Asus ROG at SGF 2025

Official Release Scheduled for Late 2025

At Xbox Games Showcase 2025, Microsoft surprised fans with two new Xbox-branded handhelds developed alongside Asus. The Xbox Ally and Ally X combine Xbox gaming with Windows PC capabilities in a streamlined portable format. In a defining moment, Hollow Knight: Silksong appeared running smoothly during the presentation—confirming the devices' capabilities.

Born from Microsoft and Asus' Project Kennan, these handhelds feature a unified gaming interface launching directly into Xbox UI. Players can access their entire library including Game Pass titles, Steam, Epic Store games, Battle.net content, and more.

The white Xbox Ally serves as the entry model, featuring AMD's Ryzen Z2 A chipset with 16GB LPDDR5X RAM and 512GB SSD storage, optimized for 720p gaming.

Its premium counterpart, the black Xbox Ally X, upgrades to AMD's Ryzen AI Z2 Extreme processor with dedicated NPU, 24GB RAM, and 1TB SSD—all powering a 7-inch 1080p 120Hz display capable of gaming resolutions up to 1080p.

Microsoft's Shawn Yen highlighted "efficiency" as these devices' key advantage. The Ally X incorporates an industry-leading 80Wh battery, while the base model features a substantial 60Wh capacity—50% more than the original ROG Ally. Coupled with a lightweight Windows 11 build prioritizing performance, both models promise extended battery life and optimized gameplay.

The Silksong demo became an instant viral moment, showcasing how these powerful handhelds might reshape PC gaming. With premium hardware, console-level optimization, and these surprise reveals, the handheld market just got significantly more competitive.