ROG Xbox Ally Launches: Microsoft Enters Handheld Gaming Market with Windows-Powered Console

By Harshit | 16 October 2025 | Redmond, WA | 1:00 AM PDT


Microsoft’s Long-Awaited Handheld Console Arrives

After nearly two decades of speculation, Microsoft has finally entered the handheld gaming arena with the release of the ROG Xbox Ally, a portable device designed to rival Nintendo and PlayStation offerings. The console launched worldwide this week and immediately distinguishes itself from competitors by running Windows 11, giving users access to both Xbox Game Pass and a vast library of PC games.

The Xbox Ally comes in two models: a standard version priced at £499 and the more powerful ROG Xbox Ally X at £799. With these options, Microsoft aims to appeal to gamers who want the versatility of a portable PC combined with the convenience of a handheld console.


Design and Gameplay Experience

In terms of ergonomics, the Xbox Ally feels like a natural extension of the Xbox ecosystem. Its controller, integrated on either side of the screen, offers a comfortable grip, with responsive thumb sticks and well-designed triggers, though the face buttons feel slightly plasticky.

The device’s 1:1 LCD display has raised questions among enthusiasts, as OLED panels are typically considered superior for color vibrancy and contrast. Despite this, games such as Persona 5 Royal demonstrate impressive color depth, with rich reds and crisp animation that deliver an engaging handheld experience.

Being a Windows-powered device, the Xbox Ally is not immune to typical PC quirks. Some titles may require manual adjustments, such as changing graphics settings in Baldur’s Gate 3 to achieve smooth performance. Older games, including Sonic Adventure 2, may face compatibility issues, though the flexibility of Windows 11 allows for troubleshooting.


Gaming Library and Game Pass Integration

The Xbox Ally is designed to take full advantage of Game Pass, Xbox’s subscription service. Users can stream or download hundreds of titles, ranging from Halo and Gears of War to modern hits like Call of Duty. Additionally, subscriptions to EA Play and Ubisoft+ are integrated into Game Pass Ultimate, broadening the playable library.

Cloud streaming enables high-end games, such as Modern Warfare 3, to run smoothly without taxing the device hardware. Meanwhile, PC game compatibility ensures that existing digital libraries can also be played, though performance may vary depending on game optimization and hardware demands.


Competition in the Handheld Market

Microsoft enters a crowded market where handheld consoles are increasingly common. Nintendo’s Switch 2 continues to dominate, offering a highly polished experience, while Sony’s PlayStation Portal streams PlayStation 5 games on the go. Valve’s Steam Deck has established itself as a capable portable PC gaming device over the past three years.

The Xbox Ally competes well on paper, particularly for gamers seeking a portable Windows machine capable of running a variety of titles. Its integration of Copilot, Microsoft’s AI assistant, adds an extra layer of interactivity, helping players navigate games with conversational guidance.


Challenges and Considerations

Despite its strengths, the Xbox Ally’s reliance on Windows 11 introduces friction. Initial setup requires system updates and occasional configuration, which may frustrate casual users. Unlike Nintendo or PlayStation handhelds, the Ally lacks the plug-and-play polish that some gamers expect from a premium-priced device.

Compatibility remains a potential hurdle. While streaming and Game Pass games function seamlessly, older PC titles may require additional adjustments. Nevertheless, for Microsoft’s target audience—gamers familiar with PCs—these limitations are unlikely to deter adoption.


Verdict

The ROG Xbox Ally succeeds in delivering a portable Xbox experience with the versatility of a Windows PC. While it may lack the instant polish of traditional handheld consoles, its expansive library, cloud streaming capabilities, and AI-assisted gameplay offer compelling reasons for gamers to invest.

The question remains whether the device has arrived too late in a market dominated by established handheld consoles, but for PC gamers and Xbox enthusiasts, the Ally represents a long-awaited opportunity to take gaming anywhere.

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