At the Xbox Games Showcase overnight, Microsoft introduced a pair of handhelds rather than another living-room console. Both devices run Windows 11 and center on a heavily adapted Xbox app built for pocket-sized hardware.
The Xbox app’s interface has been redesigned for handheld use and now includes an aggregated library that shows not only games bought from the Microsoft Store but also titles from Steam, the Epic Games Store, and other PC storefronts. Xbox Play Anywhere and Game Pass titles are available as well.
Microsoft says the experience will feel familiar to console players. The UI minimizes reliance on keyboard, mouse, or touch input so players can largely navigate with thumbsticks and buttons, including interactions on the lock screen. Even in full-screen mode, users can switch between apps thanks to an Xbox game bar, allowing access to things like Chrome without returning to a desktop.
Two models emerge from Asus collaboration
The handhelds are the result of a collaboration with Asus, an effort that was known internally under the codename Kennan. That work produced two devices: the base Xbox Ally and the more powerful Xbox Ally X. The two share the same shell and controls; the base model ships in white while the higher-end unit is black.
Shared display, audio and wireless features
Both consoles use a 7-inch Full HD display with a peak brightness of 500 nits and a 120 Hz refresh rate. Audio comes from dual Smart Amp speakers with Dolby Atmos support.
Wireless connectivity is the same across both models and includes Wi-Fi 6E (2×2) and Bluetooth 5.4.
Xbox Ally: AMD Z2 A for 720p handheld play
The base Xbox Ally is powered by an AMD Ryzen Z2 A processor paired with an AMD Radeon GPU based on RDNA 3. Microsoft positions this combo for smooth 720p gameplay.
The entry model ships with 16 GB of LPDDR5X-6400 RAM and a 512 GB SSD in an M.2 2280 slot. Internal storage can be expanded with a memory card.
Ports include a 3.5 mm headphone jack and two USB-C ports operating at USB 3.2 Gen 2. A 60 Wh battery charges over USB and the unit weighs 670 grams.
Xbox Ally X: Ryzen AI Z2 Extreme and AI-enhanced graphics
The Xbox Ally X steps up to an AMD Ryzen AI Z2 Extreme CPU and an AMD Radeon RDNA 3 GPU with AI Boost features. Microsoft highlights AI-enabled functions such as frame interpolation and AI upscaling to improve performance and visual quality.
This model is tuned for Full HD play of demanding AAA titles. It comes with 24 GB of LPDDR5X-8000 RAM and a 1 TB SSD, with additional expansion via memory card.
Port selection mirrors the base model, but one of the USB-C ports on the Ally X supports Thunderbolt 4. Battery capacity increases to 80 Wh, and the device weighs 715 grams.
Availability and expected pricing
Asus says both consoles will ship before this year’s holiday season. Official pricing has not been announced, though the Ally X is expected to exceed $1,000.
