After five years without any significant new Xbox hardware, Microsoft’s next big hardware play may not come from its own labs. Instead, Asus is stepping up with a handheld gaming device that blends Xbox-style controls with a central screen—essentially a split Xbox controller fused into a PC gaming machine.
While Microsoft appears to have postponed its own first-party handheld, it’s now leaning on partners like Asus to deliver on its vision of Xbox anywhere, anytime. But that vision could falter before launch—if pricing becomes a barrier for mainstream adoption.
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Pricing Leak Raises Concerns About Affordability
According to a leak first reported by Insider Gaming via Spanish-language tech site 3DJuegos, the upcoming Asus ROG Xbox Ally and Xbox Ally X may carry steep price tags. Screenshots from purported retailer listings suggest:
- ROG Xbox Ally with an AMD Ryzen Z2A chip could cost €600 (~$700)
- ROG Xbox Ally X, using a more powerful Ryzen Z2 Extreme APU, may go for €900 (~$1,050)
These price points are speculative and may vary by region. However, U.S. prices could be even higher depending on tariffs and market positioning—making affordability a real concern for American consumers.
Still Time to Adjust—But Pressure Is Mounting
It’s worth noting that Asus has several months before the official launch to finalize pricing. These figures could simply reflect placeholder estimates based on current hardware costs in Europe. Nevertheless, the leak underscores a larger issue: pricing remains one of the biggest hurdles for handheld gaming PCs.
Case in point: Asus recently raised the U.S. price of its 1TB ROG Ally X from $800 to $900, likely in response to import duties. Initially, it was hoped that Microsoft might subsidize the price of its branded hardware to make it more competitive. That hope now seems uncertain.
How the Xbox Ally Stacks Up Against Competitors
The handheld gaming space is heating up, but Asus will have to compete with some well-established players:
- Steam Deck LCD: Currently the most affordable handheld at $399, while the OLED version offers better visuals at $550
- Lenovo Legion Go S (SteamOS): Originally priced at $550, now $600
- Legion Go S (Windows): With similar hardware to the Xbox Ally, costs $730
Windows-based devices tend to be more expensive due to OS licensing costs. If Asus is paying full price for Windows and passing that cost on to consumers—despite the Xbox branding—that could be a missed opportunity for Microsoft to make a splash in this market.
Xbox Ally: A Promising Device with Some Caveats
On the technical side, the ROG Xbox Ally does offer several appealing features:
- A Windows variant tailored for handheld gaming
- Full integration with the Xbox app and Game Pass
- Compatibility with Steam, Epic Games Store, and other major launchers
- Support for Thunderbolt 4 and DisplayPort 2.1
- Potential eGPU compatibility for high-performance gaming while docked
However, key questions remain. Will the device support smaller platforms like GOG or emulators? Will Microsoft allow users to customize the Xbox interface as freely as Valve allows with SteamOS?
One of the strengths of the Steam Deck is its openness and community-driven enhancements. Microsoft must embrace that ethos if it wants its Xbox-branded device to be more than a premium-priced curiosity.
The Verdict: Price Could Make or Break the Xbox Ally
The Asus ROG Xbox Ally has a lot going for it: brand appeal, hardware capability, and deep Xbox integration. But if it launches with pricing that competes poorly against more affordable and flexible alternatives like the Steam Deck, it may struggle to gain traction—even among die-hard Xbox fans.
Microsoft’s broader hardware vision relies on making gaming more accessible—not just more powerful. If it truly wants to revitalize its Xbox ecosystem through portable gaming, it must ensure these devices are priced for success, not exclusivity.
Frequently Asked Questions
What is the Asus Xbox Ally handheld?
The Asus Xbox Ally is a handheld gaming device designed in partnership with Microsoft. It resembles a split Xbox controller with a built-in screen, running a custom version of Windows optimized for handheld gaming and Xbox integration.
How much will the Asus Xbox Ally cost?
According to leaked information, the base model could cost around €600 ($700), while the higher-end Xbox Ally X model may be priced at approximately €900 ($1,050). However, these prices are unofficial and may change before launch.
When will the Asus Xbox Ally be available?
The device is expected to launch later this year, but an official release date has not been announced yet.
What games can I play on the Xbox Ally?
The Xbox Ally supports Xbox Game Pass games through the Xbox app and also allows playing titles from other platforms like Steam and Epic Games Store. It runs a Windows variant, so it should support a wide range of PC games.
Will the Xbox Ally support game emulators or smaller game launchers like GOG?
Microsoft has not confirmed support for smaller launchers or emulators yet. Since the device boots into full Windows, it is technically possible, but official support details remain unclear.
How does the Xbox Ally compare to the Steam Deck?
The Steam Deck is generally more affordable and runs Valve’s Linux-based SteamOS, which is highly customizable. The Xbox Ally runs Windows and integrates Xbox services but is expected to have a higher price point, which may affect its competitiveness.
Conclusion
The Asus ROG Xbox Ally represents an ambitious step forward in Microsoft’s evolving hardware strategy—one that leans heavily on third-party innovation. With its Xbox-branded identity, full Windows compatibility, and promising specs, the device has the potential to bridge the gap between console convenience and PC flexibility.
However, its success may ultimately hinge on one critical factor: pricing. In a market already dominated by more affordable and open alternatives like the Steam Deck, an expensive entry—no matter how capable—could struggle to find its footing.