Xbox is making a handheld gaming device console for gamers.

Xbox is making a handheld gaming device. Much more than a distant possibility, Xbox is making a handheld officially here. Xbox is making a handheld, partnering with ASUS’s ROG division under the project codename ‘Project Kennan’. Microsoft revealed two models: the ROG Xbox Ally. The premium-tier ROG Xbox Ally X Both devices run Windows 11. And feature a full-screen Xbox-centric interface. Xbox is introducing a handheld-style grip with buttons and a unified game library across Xbox, Steam, Epic, and other platforms.

Sporting 7″ 1080p 120 Hz displays, AMD Ryzen Z2-series custom APUs. And dedicated Xbox making handheld buttons. It’s designed to cater to gamers seeking portability without compromising performance. The launch window is scheduled for the 2025 holiday season. Signalling Microsoft’s commitment to delivering next-generation handheld gaming by year-end.

This marks a pivotal shift as Xbox finally delivers dedicated handheld hardware through a strategic OEM collaboration. Blending the flexibility of PC and cloud gaming with console-like ease in one seamless device. It’s not a gadget, it’s a unified gaming platform.

Hardware & Design

The ROG Xbox Ally features a white chassis. Contoured Xbox-inspired grips, a 7″ 1080p 120 Hz touchscreen, 16 GB of LPDDR5X-6400 RAM, a 512 GB SSD, and a 60 Wh battery. The premium Ally X ups the ante with a black finish, an impressive 24 GB LPDDR5X-8000 RAM, a 1 TB SSD, and an 80 Wh battery. Xbox is making a handheld includes impulse triggers for tactile feedback and Thunderbolt 4 support.

Both devices are powered by tailored AMD Ryzen custom APUs—Z2 A for the base model and Z2 Extreme for the X model, balancing performance and battery efficiency. With USB-C ports, microSD expandability, Wi-Fi 6E, and Bluetooth 5.4, they’re as capable as compact PCs. Comfort-enhancing ergonomics and console-grade controls. Aim to replicate a living-room experience in portable form.

UI & Software Experience

These handhelds boot directly into a full-screen Xbox experience. Designed to maximise gaming by minimising background Windows tasks. The system allocates more RAM and CPU cycles to gameplay. Delivering smoother performance and improved battery life. A redesigned Game Bar overlays features for more straightforward navigation, access to friends, settings, and apps. All optimised for controller use.

Xbox, Steam, Epic, and Battle.net games are aggregated into a single library. Ready to play whether they’re installed, streamed via Game Pass, or played from the cloud. Microsoft is also working on a handheld-verified mark (like Steam Deck Verified). It helps users identify optimal performance.

Initial models will include the optimised interface. Microsoft plans to roll out UI enhancements to previous ROG Ally handhelds and Windows handheld devices next year.

Gaming Capabilities

The devices support native PC games, Xbox Game Pass, Xbox Cloud Gaming, and Xbox Remote Play. Giving access to thousands of titles seamlessly. They’re also part of Xbox’s “Play Anywhere” initiative. It allows progress and achievements to travel between Xbox and PC counterparts.

Powered by advanced AMD chips, these handhelds aim to rival the Steam Deck in the 15–20W power range. Offering impressive performance per watt, smooth framerates, and efficiency. The Ally X is positioned as the go-to choice for gamers seeking the highest graphics and framerates on the move.

Microsoft’s commitment to optimising Windows 11. And integrating cloud and remote services showcases a unified ecosystem. Users can seamlessly switch between downloaded games, cloud streaming, and remote play.

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Strategy & Market Position

Xbox’s handheld venture blends a hardware partnership with ASUS and refined software optimisations. An alternative to developing first-party hardware. This approach leverages ASUS’s strengths in handheld PC engineering while Microsoft focuses on software and branding.

While reports suggest first-party handheld prototypes were paused, Project Kennan carries Xbox’s vision forward through an OEM strategy. By unifying Xbox and Windows gaming across various form factors, console, PC, cloud, and handheld, Microsoft aims to maintain its relevance in the face of competition from devices like the Steam Deck, PlayStation Portal, and Nintendo Switch 2.

This strategy complements Microsoft’s multi-platform approach, evident in Xbox game releases on PS5, Switch, and other platforms, and positions handheld devices as another critical component in their expanding ecosystem.

FAQ’s

When will the Xbox Ally be available? 

Scheduled for the 2025 holiday season in select global markets.

What’s the difference between Ally and Ally X?

Ally features 16 GB RAM, 512 GB SSD, and a 60 Wh battery. Ally X upgrades to 24 GB RAM, 1 TB SSD, 80 Wh battery, impulse triggers, and Thunderbolt 4.

Can I play Xbox console games?

Yes, natively through Game Pass, via Xbox Cloud Gaming, or using Xbox Remote Play features.

Will non-Xbox PC games run?

Steam, Epic, Battle.net, and other PC titles integrate through the unified library.

How does it compare to Steam Deck?

Tailored Windows optimisations and Xbox UI set it apart, and the Ally X aims to match or surpass the Steam Deck in battery life and performance.

Conclusion

The ROG Xbox Ally series represents a bold Step forward in Xbox’s pursuit of handheld gaming excellence. By blending the familiarity of Xbox’s ecosystem with the versatility of a powerful PC handheld, Microsoft is offering gamers a device that bridges the gap between console and mobile gaming. With seamless access to Xbox Game Pass, native PC games, and cloud gaming, players can now enjoy their favourite titles anywhere, anytime.

This collaboration with ASUS underscores Microsoft’s strategic shift toward leveraging partnerships for hardware innovation. The choice to focus on software, UI optimisation, and cross-platform integration, rather than building first-party hardware from scratch, reflects Xbox’s evolving approach to delivering value to its community. The ROG Xbox Ally and Ally X stand as proof that third-party partnerships can produce cutting-edge, competitive gaming devices.

As the handheld gaming market continues to grow, the ROG Xbox Ally series positions Xbox as a serious contender in this space. Whether for casual cloud gaming or hardcore native gameplay, these handhelds offer an experience that aligns with Xbox’s broader vision of gaming beyond traditional boundaries. For gamers seeking performance, flexibility, and ecosystem integration, the ROG Xbox Ally series is poised to deliver on all fronts.

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