Mere days after the Nintendo Switch 2 launched in most territories, Microsoft announced the ROG Xbox Ally. Developed by Asus in partnership with the Redmond-based software giant, it’s a new iteration in the Ally series of gaming handhelds set to launch at the end of this year.
Many have taken this new hardware partnership as a sign that Microsoft is going after the space occupied by Nintendo, which just broke sales records with the Nintendo Switch 2 earlier in the month. And that’s an understandable assumption given the massive success the Mario and Zelda maker has with the original Nintendo Switch, which sold north of 150 million units in a little over eight years.
But the truth is that Microsoft’s handheld strategy isn’t a play to expand their share as a console maker, it’s a play for all of PC gaming. People forget that Microsoft is a software company first and foremost. Always has been. Any hardware initiative they have, whether one currently in the oven or one like the Xbox Ally is always going to be about building a bridge between its Xbox platform and as many users as possible.
While pricing information has yet to be provided, the Xbox Ally is being pitched as an “essential handheld at a great value” and its beefier counterpart, the Xbox Ally X is described as “the ultimate high-performance handheld.” The strategy is identical to that of the original series of ROG Ally devices, as well as that of Xbox’s own two box strategy via the modestly powered Series S and full spec Series X consoles.
The announced devices are an affirmation of Microsoft’s commitment to a device agnostic strategy. Xbox is not one line of devices but an ecosystem. Existing Xbox users already know what this is like in action: save data synchronized across all devices; the ability to play on your console then relocate elsewhere when the rest of the household needs to use the TV. Expanded as it is to handhelds and smartphones, Microsoft truly wants Xbox to follow players anywhere.
But what is being overlooked here is that these are not simply rebrands of Asus’ existing hardware, nor are they simply high powered alternatives to smartphones. They’re a play to get Xbox into the hands of the most dedicated PC gamers. It’s telling when Xbox said, “[B]ecause these handhelds run Windows, you have access to games you can’t get elsewhere, so you can enjoy the full freedom and versatility of PC gaming all straight from the Xbox experience.”
On the surface, this seems like mere marketing speak to spin new versions of the ROG Ally. But what Microsoft is signaling is the opportunity it sees in offering a device with wider functionality than expected from them, appealing to PC gamers in general while continuing to court its existing brand loyalists. It’s not just about getting handheld PC users to accept an Xbox button on the casing of their daily driver, it’s about leveraging trust in the Asus brand.
And while Valve is a company with high standing among many PC gamers, the Deck is only available for purchase from Steam itself. Not that it has limited it’s success: the Deck makes up half of the over six million handheld PCs sold between 2022 and 2025. Where it is most vulnerable is its focus on the Steam experience to the exclusion of all else. Users have to tinker with it to get games from other storefronts to run with any kind of reliability and consistency.
With devices like the Xbox Ally, Microsoft can be at the vanguard of handheld PC gaming and solidify a position for Windows. “This partnership shows Microsoft’s increasing commitment to the PC gaming market, and its intent to protect and expand the role of Windows as the dominant gaming platform,” writes Piers Harding-Rolls, head of games research for Ampere Analysis in a post on LinkedIn.
Every Xbox Ally handheld sold isn’t just another Windows-based gaming PC in player’s hands. It’s Microsoft promising the best Windows gaming experience it can provide. In addition to playing PC games, the two handhelds can stream games via Remote Play and Xbox Cloud Gaming. The interface is similar to the Xbox dashboard or Xbox desktop app. It’s also built on Windows, but optimized so non-essential tasks are deferred while in-game to free up resources..
With Xbox Ally handhelds, users get a portable gaming PC that in Microsoft’s own words, delivers access to “games you can’t get elsewhere,” citing Game Pass, Battle.Net and “other” storefronts. That doesn’t just mean Steam and the Epic Games Store, but the storefronts of friendly third-parties like EA Play and Ubisoft Connect. Support for apps like Discord and Twitch will also be integrated into the backbone of the device.
Mind you, the success of the Xbox ROG Ally is not guaranteed. Pricing, which is certain to be a challenge in a landscape of rising prices for home consoles, won’t be the only deciding factor. Ultimately, it’s a bet on PC players valuing the historical flexibility of the Windows platform while also envying the bespoke experience of a console-type ecosystem. The Xbox ROG Ally’s goal is to square this circle. But no matter what happens, it’s exciting to see Xbox step into a new arena.
