Microsoft, Asus Unveil ROG Xbox Ally: A New Rival to Nintendo Switch

Asus is releasing the ROG Xbox Ally, a handheld gaming device that runs Windows 11 and is designed to compete with Nintendo's Switch. The device will be available in October and comes in two versions: Xbox Ally and Xbox Ally X. It can play games natively, stream from the cloud, or use Remote Play to connect to an Xbox at home. Gaming handhelds have gained popularity in the last five years, with sales expected to reach 2.3 million this year. The upcoming Windows 11 gaming mode and the first Xbox-branded handhelds launching in late 2025 may further boost the category.

Asus and Microsoft are set to launch the ROG Xbox Ally, a powerful handheld gaming device, in October 2025. The device, which runs Windows 11, aims to compete with established handhelds like the Nintendo Switch. The ROG Xbox Ally comes in two versions: the standard Xbox Ally and the premium Xbox Ally X, which features advanced AI-driven performance and a user-friendly interface [1].

The ROG Xbox Ally X is equipped with an AMD Ryzen AI Z2 Extreme processor, delivering up to 50 TOPS of performance with integrated Radeon Graphics and an XDNA NPU. This hardware is complemented by a vibrant 120 Hz 1080p display and 24GB of LPDDR5X memory. The device's performance capabilities were showcased at Gamescom 2025, where it ran DOOM: The Dark Ages at 70 FPS with ray-tracing enabled, drawing only 28W of total system power [1].

One of the standout features of the ROG Xbox Ally X is its AI-driven enhancements. The device uses AI upscaling to deliver sharper graphics and smoother performance, particularly in demanding titles like DOOM: The Dark Ages. Microsoft plans to leverage the device's NPU for its own Super Resolution upscaling and other rendering technologies, potentially including AI-powered Frame Generation [1].

The ROG Xbox Ally X also features a simplified Windows 11 interface, designed to be more user-friendly and controller-friendly. This interface eliminates unnecessary background processes, allowing more resources for gaming and resulting in higher frame rates [1].

The ROG Xbox Ally X is positioned as a premium offering in the handheld gaming market, with a rumored starting price of $599 for the base model and around $900 for the flagship version. The combination of powerful hardware, AI-enhanced performance, and a tailored user interface could justify the higher price point for enthusiasts seeking top-tier portable gaming experiences [1].

The upcoming ROG Xbox Ally represents a significant step forward in handheld gaming technology. By addressing the longstanding issues of Windows-based handhelds while leveraging cutting-edge AI capabilities, it has the potential to reshape the market. If successful, it could push competitors to innovate further, potentially leading to a new generation of more powerful and user-friendly gaming handhelds [1].

The launch of the ROG Xbox Ally coincides with a growing trend in handheld gaming. Sales of gaming handhelds are expected to reach 2.3 million units this year, with the Windows 11 gaming mode and the first Xbox-branded handhelds launching in late 2025 potentially boosting the category further [3].

References:
[1] https://theoutpost.ai/news-story/rog-xbox-ally-x-a-game-changing-handheld-with-ai-powered-performance-19464/
[2] https://www.business-standard.com/technology/tech-news/what-is-new-xbox-app-feature-my-apps-on-windows-11-powered-asus-rog-xbox-ally-125082200575_1.html
[3] https://gameworldobserver.com/2025/08/27/in-july-the-revenue-of-the-us-gaming-market-exceeded-5-billion-with-the-main-hit-of-the-month-being-ea-sports-college-football-26