Xbox Ally: Steam Deck's New Rival, Unveiled with Asus ROG

The newly unveiled Xbox Ally and Xbox Ally X, revealed during the Xbox Games Showcase at Summer Game Fest 2025, mark a major leap in handheld gaming innovation. Developed through a strategic collaboration between Microsoft and Asus ROG, these devices are set to launch later this year—bringing a fresh contender into the competitive handheld market.

A Powerful Partnership: Microsoft x Asus ROG

Born from the joint development initiative known as Project Kennan, both the Xbox Ally and Xbox Ally X were designed with one clear objective: to deliver a seamless, console-inspired handheld experience powered by Windows. These systems boot directly into a full-screen Xbox interface, making your game library—including titles from Xbox Game Pass, Steam, Epic Games Store, Battle.net, and more—easily accessible and optimized for on-the-go play.

Xbox Ally vs. Xbox Ally X: What’s the Difference?

The Xbox Ally (white variant) is the entry-tier model, built for smooth 720p gameplay. It features:

• AMD Ryzen Z2 A chip
• 16GB LPDDR5X RAM
• 512GB SSD

Meanwhile, the Xbox Ally X (black variant) steps up performance for higher-resolution gaming, supporting up to 1080p. Its specs include:

• AMD Ryzen AI Z2 Extreme chip with a powerful 50 TOPs NPU
• 24GB faster RAM
• 1TB SSD
• A stunning 7-inch 1080p display with 120Hz refresh rate

Efficiency Meets Performance

As highlighted by Microsoft’s Shawn Yen during the showcase, the guiding principle behind these devices is efficiency. The Xbox Ally X features an 80Wh battery, one of the largest ever seen in a handheld, while the base Xbox Ally offers a 60Wh battery, a significant 50% increase over the original ROG Ally.

To maximize battery life and reduce background resource usage, the system runs a stripped-down version of Windows 11, engineered specifically for optimal handheld performance. This means longer play sessions and smoother gameplay without unnecessary overhead.

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A Standout Demo Moment

One of the most anticipated moments of the presentation was seeing Hollow Knight: Silksong running live on the device. Fans have been eagerly awaiting news about the title, and its appearance here confirmed not only the device's capability but also the growing momentum behind high-quality handheld PC gaming.

With top-tier hardware, a streamlined interface, and support for some of the most anticipated games, the Xbox Ally series sets a new benchmark in portable gaming. As the handheld war heats up, it’s clear that Steam Deck now has serious competition.