Microsoft and Asus just opened preorders for their first Xbox handhelds, with the ROG Xbox Ally starting at $599 and the flagship Ally X hitting $999. Both devices ship October 16th, marking Microsoft's long-awaited entry into portable gaming with Windows-based handhelds that promise console-quality gaming on the go.
Microsoft just made its boldest move yet into portable gaming, and the price tags are turning heads. The company opened preorders today for its first Xbox handhelds - the ROG Xbox Ally at $599 and the premium Ally X at $999 - both built in partnership with Asus and shipping October 16th.
The sticker shock is real. That base $599 price puts Microsoft's entry-level handheld $150 above Nintendo's already-criticized Switch 2 pricing and $100 more than what a far more powerful Xbox Series X cost at launch. In Europe and the UK, the situation gets even starker - the weaker Ally costs exactly what an Xbox Series X does.
But Microsoft isn't just throwing another handheld into the ring. These devices will debut with a new build of Windows that hides the desktop completely, frees up memory for games, and lets you navigate everything with just a controller. It's Microsoft's answer to Steam Deck's seamless gaming experience, but running full Windows.
The hardware tells two different stories. The $999 Ally X packs AMD's Z2 Extreme chip with 8 Zen 5 CPU cores and 16 RDNA 3.5 GPU cores, designed to run between 15-35 watts. That puts it in the same league as the $1,349 Lenovo Legion Go 2 and the $999 MSI Claw 8 AI Plus.
The cheaper $599 model is the wild card. It runs a never-before-seen Ryzen Z2 A processor that's more like the Steam Deck's chip - just 4 Zen 2 CPU cores and 8 RDNA 2 GPU cores running at 6-20 watts. That's a significant performance drop that could leave budget buyers disappointed.
Retail strategy shows Microsoft's confidence in premium positioning. The high-end Ally X will be exclusive to Best Buy, the Asus Shop, and Microsoft stores. The base Ally goes wider with Amazon, Walmart, and specialty retailer Ant Online joining the mix.
Global rollout spans 40+ countries at launch, with expansion to Brazil, China, India, and other markets following. Pricing varies significantly by region - the Ally X costs $1299 CAD in Canada, €899 in Europe, £799 in the UK, and $1599 AUD in Australia.
This marks a pivotal moment for handheld gaming. Steam Deck proved the market exists, but Microsoft's betting that Windows compatibility and Xbox Game Pass integration can justify premium pricing in an increasingly crowded field.
The timing couldn't be more critical. Handheld prices have been climbing steadily, with flagship devices now costing as much as gaming laptops. Microsoft's entry validates this trend while raising the stakes for everyone else.
Early hands-on impressions praise the Ally's ergonomics, with reviewers calling the "prongs" design one of the most comfortable they've held. But comfort won't matter if the performance and price don't align with consumer expectations.
Microsoft's Xbox Ally launch represents a calculated gamble on premium handheld gaming. While the pricing puts these devices squarely in laptop territory, the promise of full Windows compatibility and optimized Xbox integration could justify the cost for PC gamers seeking portability. The real test comes when reviews hit and consumers decide if Microsoft's first handhelds are worth the premium over established competitors like Steam Deck.
