Microsoft just made its first Xbox handheld gaming official. Working with Asus, the companies launched preorders today for two ROG Xbox Ally models - the base unit at $599 and the more powerful X version at $999. Both devices ship October 16th, marking Microsoft's entry into the portable gaming market that's been dominated by the Steam Deck and Nintendo Switch.
Microsoft just dropped a bombshell in the handheld gaming space. The company's first Xbox portables are now available for preorder, priced at $599 for the standard Xbox Ally and $999 for the Xbox Ally X. Both devices launch October 16th across more than 40 countries worldwide.
The pricing tells a story about Microsoft's ambitions. At $599, the base Xbox Ally costs $150 more than Nintendo's Switch 2, which itself faced criticism for its premium pricing. The $999 Xbox Ally X matches the cost of MSI's Claw 8 AI Plus and undercuts Lenovo's Legion Go 2 by $350, despite sharing the same AMD Z2 Extreme processor.
What sets these devices apart isn't just the Xbox branding. These handhelds will be the first to ship with a specialized build of Windows that hides the desktop interface entirely. The streamlined OS frees up significant memory for games and allows full controller navigation, addressing one of the biggest complaints about Windows-based handhelds.
The retail strategy reveals Microsoft's careful approach to market entry. In the US, the premium Xbox Ally X will be exclusive to Best Buy, the Asus Shop, and Microsoft's own store. The base model gets wider distribution through Amazon, Walmart, and additional retailers.
Technically, the devices represent two very different approaches to portable gaming. The Xbox Ally X packs 8 Zen 5 CPU cores and 16 RDNA 3.5 GPU cores with a 15-35 watt TDP range, positioning it as a premium gaming machine. But the $599 model is more of a wild card, featuring an untested Ryzen Z2 A processor with just 4 Zen 2 CPU cores and 8 RDNA 2 GPU cores running at 6-20 watts - specs that mirror Valve's Steam Deck more than high-end handhelds.
The handheld gaming market has been experiencing significant price inflation recently. , with flagship models regularly hitting the $1000+ mark. Microsoft's entry adds another premium option to an increasingly crowded field.
