Xbox’s New Handheld Costs $1,000 – Why the ROG Ally X Has Gamers Talking

Xbox’s First Handhelds Unveiled: Microsoft and Asus have introduced two Xbox-branded handheld gaming PCs – the ROG Xbox Ally (base model) and ROG Xbox Ally X (high-end). They launch globally on October 16, 2025, with pre-orders live in 38 countries ^[1].
Premium Price Tags: The base ROG Xbox Ally is priced at $599.99 USD, while the more advanced ROG Xbox Ally X costs $999.99 USD ^[2]. (UK pricing is £499.99/£799.99; EU €599/€899.) These prices make them the most expensive “Xbox” devices ever – the X model costs $1000, more than an Xbox Series X console did at launch ^[3].
High-End PC Hardware: The Ally X features an AMD Ryzen Z2 Extreme processor, 24GB RAM, and 1TB SSD storage ^[4]. The base Ally has a weaker Ryzen Z2 A chip, 16GB RAM, and 512GB storage ^[5] ^[6]. Both sport a 7-inch 1080p display (120Hz) and run Windows 11 with a special Xbox-optimized interface. The Ally X even includes impulse trigger haptics like an Xbox controller, a feature absent on the base model ^[7].
Xbox Integration & Features: Designed in partnership with Xbox, these handhelds boot directly into an “Xbox Full Screen” experience on Windows, mimicking a console UI while freeing up system resources for gaming ^[8]. They support Xbox Game Pass (each includes 3 months free), Xbox Cloud Gaming, Remote Play, and an aggregated game library across Xbox and PC stores ^[9] ^[10]. Essentially, they bring the Xbox ecosystem to a portable PC.
Competitive Landscape: The Ally X’s $999 price aligns with other flagship PC handhelds – for example, MSI’s Claw 8 AI Plus also runs ~$999, and Lenovo’s Legion Go 2 is even pricier ^[11]. However, Valve’s Steam Deck starts around $400, meaning the base Xbox Ally ($599) is roughly double the Steam Deck’s price for similar performance ^[12]. This contrast has raised eyebrows among gamers and press, who note handheld PCs are now costing as much as mid-range gaming laptops ^[13].
Mixed Early Reactions: The announcement sparked both excitement and sticker shock. Some fans hoped Microsoft’s foray into handhelds would be more affordable, but those hopes were dashed by the steep pricing ^[14]. Tech journalists praise the devices’ comfortable design and Xbox integration, yet question the value at this cost. One editor flatly noted that seeing Steam Deck-like specs in a $600 Ally is “not a good start for Microsoft” ^[15]. A Pure Xbox poll found nearly 3/4 of respondents don’t plan to buy at these prices ^[16].

Xbox Joins the Handheld Gaming Race

For the first time, Microsoft is officially putting the “Xbox” name on a handheld gaming device. In partnership with Asus’ Republic of Gamers division, Microsoft announced the ROG Xbox Ally and ROG Xbox Ally X – two portable gaming PCs that integrate tightly with the Xbox ecosystem. Unlike a traditional console, these devices are essentially mini Windows 11 PCs with gamepad controls, but they come pre-tuned for a console-like experience. Microsoft touts that you can “power on directly into the Xbox full screen experience”, a custom Windows interface optimized for handheld gaming ^[17]. In essence, Microsoft took Asus’s ROG Ally hardware and layered it with Xbox-flavored software and branding to deliver what it calls a “distinctly Xbox experience in the palm of your hands” ^[18].

Two models are being launched to cater to different gamers. The standard ROG Xbox Ally (in white) is pitched as “the essential handheld for everyone from the casual player to the avid enthusiast,” while the black ROG Xbox Ally X is “the ultimate high-performance handheld, built for the most demanding players” ^[19]. Both units share the same form factor – a 7-inch touchscreen, built-in gamepad controls, and an Xbox Guide button – but they differ significantly under the hood and in price.

Crucially, this is not a wholly new, from-scratch Xbox console. Microsoft didn’t design proprietary handheld hardware or a custom OS (earlier rumors of a first-party “Xbox handheld” were put on hold). Instead, the company partnered with Asus and doubled down on making Windows 11 work better on portable devices ^[20]. Industry insiders note that Microsoft shelved its internal handheld project (codenamed “Pembrooke”) in favor of supporting third-party PC handhelds like Asus’s – a strategic move likely influenced by the success of Valve’s Steam Deck and its efficient SteamOS ^[21]. By improving Windows for handheld gaming and teaming up with Asus (whose project codename “Kennan” became the Xbox Ally), Microsoft can put Xbox services on a mobile device without building a new console from scratch ^[22].

Price Shock: A $999 “Xbox” and Sticker Surprise

The headline-grabber has been the price of these devices – especially the high-end Ally X at $999.99 USD. For context, $999 is more than double the cost of a Nintendo Switch or the upcoming Switch 2, and about twice the launch price of the Steam Deck (which started at $399) ^[23]. Even the base Ally at $599.99 costs $100 more than an Xbox Series X console did at launch ^[24]. As The Verge wryly points out, “Microsoft’s first Xbox handhelds are not cheap!” – the vanilla model is $150 pricier than a Switch 2 (itself criticized for being expensive) and the weaker Ally even costs the same as a full-powered Series X in some regions ^[25]. Simply put, if you’re used to console pricing, these handhelds come at a premium.

Why such a high cost? Largely because these are cutting-edge PC hardware in a portable shell. The ROG Ally X’s $999 price reflects its beefy specs: a new AMD Ryzen Z2 Extreme APU (with Zen 5 CPU cores and RDNA 3.5 graphics), paired with 24 GB of LPDDR5x RAM and a 1 TB SSD ^[26]. This is a leap over last year’s original ROG Ally and even edges out some gaming laptops. Meanwhile, the $599 base Ally uses a more budget-friendly (and entirely new) Ryzen Z2 A chip with lower specs – essentially 4 older-gen CPU cores and 8 RDNA2 graphics cores, akin to what powers the Steam Deck ^[27]. In fact, the cheaper Ally’s performance is expected to be very similar to Valve’s Steam Deck, which is why seeing it priced around $600 – roughly twice the Deck’s current street price – prompted PC Gamer to remark “This is almost the same as the Steam Deck, which comes in at half the price… Not a good start for Microsoft.” ^[28].

Beyond the processors, both models feature a 7-inch 1080p display (120 Hz) and fast storage, but the Ally X clearly gets the top-end treatment. It not only has more memory and storage, but also enhanced controls – “impulse trigger” haptics in the triggers, similar to Xbox controllers’ vibration feedback, which the base model lacks ^[29]. The Ally X’s new Ryzen Z2 Extreme chip should outpace the original Ally’s Z1 Extreme by a modest margin, but early benchmarks suggest the gains are limited (roughly a 12% boost in some games at similar power settings) ^[30]. In fact, one analysis noted the “Extreme” chip isn’t dramatically more powerful than its predecessor – “not very extreme,” as PC Gamer quipped ^[31]. This raises the question: is the $1,000 Ally X delivering enough performance for the price, or are gamers paying mainly for the Xbox branding and incremental upgrades?

It’s worth noting that high prices are becoming the norm for flagship handheld PCs. “Handhelds have unfortunately been getting pricier and pricier… flagship ones now cost as much as gaming laptops,” writes The Verge, pointing out that a $999 Ally X sits in the same league as devices like the $999 MSI Claw handheld and well above newcomers like the $349 (rumored) Lenovo Legion Go 2 base model ^[32]. In other words, Microsoft and Asus are entering a market where $800–$1200 devices aimed at enthusiasts are common – this is a PC gaming product as much as it is an “Xbox.” Still, for Xbox console fans accustomed to $299–$499 consoles, seeing a four-figure price tag on an Xbox-branded gaming device is jarring.

Features: What You Get in an “Xbox PC” Handheld

Despite the sticker shock, the ROG Ally devices do bring a lot of features to justify themselves as premium, all-in-one gaming portables. Being Windows-based, they can run a vast library of games – not just Xbox titles, but also Steam, Epic, EA, and more. Microsoft has worked with Asus to make the experience as console-like as possible:

Xbox-Focused UI: Both models boot into a special Xbox Full Screen mode on top of Windows 11 ^[33]. This interface resembles the Xbox console dashboard and hides the typical Windows desktop. It’s designed for controller navigation, so you won’t need to tap through Windows menus on a tiny screen. This also frees up RAM and CPU by “minimizing background activity and deferring non-essential tasks” so that more resources go to games ^[34].
Quick Access & Overlays: A dedicated Xbox button on the device brings up an enhanced Game Bar overlay in Windows, letting players quickly return home, browse their library, chat with friends, or tweak performance settings via Asus’ Armoury Crate app ^[35]. Essentially, Microsoft built a layer on Windows 11 to mimic the ease-of-use of an Xbox console, acknowledging that past Windows handhelds could feel clunky to operate.
Xbox Ecosystem on the Go: The handhelds integrate with Xbox Game Pass and support Xbox Play Anywhere titles. Each Xbox Ally comes with a 3-month Game Pass Ultimate trial, giving access to “hundreds of games” that can be played via local install or cloud streaming ^[36] ^[37]. You can also use Remote Play to stream games from your own Xbox Series X|S console to the handheld, or stream directly from the cloud (Xbox Cloud Gaming) when on the move ^[38] ^[39]. Microsoft has even introduced a “Handheld Mode” compatibility indicator in the Xbox app to show which games run well on a portable – thousands of titles are flagged as “Handheld Optimized” or “Mostly Compatible” at launch ^[40].
Ergonomics and Controls: Asus carried over its expertise from the original ROG Ally. Early hands-on impressions praise the comfort and grip of the device – it has offset analog sticks and grips inspired by Xbox controllers, with pronounced “prong” handles that testers found very comfortable for long sessions ^[41]. The ROG Ally X’s impulse triggers add another layer of tactile feedback (each trigger can vibrate during gameplay), making it feel even more like a portable Xbox controller ^[42]. Both models also feature hall-effect analog sticks and triggers (on the base Ally, the triggers are hall-effect without rumble), which should resist stick drift and provide fine control.

In terms of game performance, expect the Ally X to handle modern AAA titles at better frame rates or higher settings than the base Ally. The Z2 Extreme chip in the X is AMD’s latest mobile gaming APU, roughly on par with other high-end 2025 handheld chips. By contrast, the Z2 A in the base model is a curious downgrade – with only 4 older-gen CPU cores, it’s much less powerful and more power-efficient. The Verge notes this cheaper processor is “much more like the chip in the Steam Deck” and essentially a wildcard since it’s “never-before-seen” in any device yet ^[43]. This means the $599 Ally might struggle in some demanding games or rely on lower settings/resolution, albeit likely with longer battery life and cooler operation. Asus and Microsoft are positioning the base model for casual or indie game fans, while the X is meant for enthusiasts who want top-tier performance in a handheld.

Battery life has not been heavily detailed, but Asus claims improvements in efficiency. TechRadar reports that the Z2 Extreme is touted for “next-level performance in AAA titles and improved battery life” compared to previous gen ^[44]. The actual battery capacity is around ~40 Wh (similar to the original Ally and Steam Deck), so real-world battery life will depend on power settings – probably 1.5 to 3 hours under heavy load, and more for lighter games. We’ll know more once reviews drop, but don’t expect miracles given the hardware; these are essentially gaming laptops in a Switch-like form.

Comparing to Other Handhelds: Steam Deck, Switch, and More

Microsoft’s entry into handheld gaming comes at a time when the category is booming. Valve’s Steam Deck proved there’s huge demand for a portable PC gaming machine, selling millions since 2022 and carving out a new niche. The Steam Deck starts at just $399 (for a 64GB model, $519 for 256GB), making it the budget choice – and Valve recently dropped the 256GB model as low as $320 in sales ^[45]. At $599, the base Xbox Ally is significantly more expensive than a mid-tier Deck despite offering similar performance, a point not lost on observers ^[46]. Valve’s device uses a highly optimized SteamOS (Linux-based) which runs games surprisingly well on modest hardware. In response, Microsoft’s strategy has been to optimize Windows 11 for handhelds, but Windows still carries some performance overhead. This means the Xbox Ally might need its raw spec advantage just to keep up with Steam Deck in efficiency. It also means Microsoft is competing with a much cheaper alternative – one that doesn’t directly play Xbox console games, but covers a huge PC library and even runs Game Pass via cloud or dual-boot.

Aside from Steam Deck, the Xbox Ally faces competition from a growing lineup of Windows handhelds made by other companies. Asus ROG Ally (2023), the direct predecessor, launched at $699 for the high-end model. The new Xbox Ally X essentially replaces that with updated internals and the Xbox-specific software. Lenovo’s Legion Go was another entrant in late 2024, priced around $699–$799 for a similar AMD-based handheld with detachable controllers. In fact, Lenovo is already working on a Legion Go 2 for 2025, which is rumored to use the same Ryzen Z2 Extreme chip as the Ally X – but leaks suggest it could start above $1,000 for higher configurations ^[47]. Niche enthusiast brands like AYA Neo and GPD have pushed prices even higher (often $1,000–$1,500) for bleeding-edge chips like AMD’s upcoming Strix Halo or Intel’s latest. All this indicates a trend: portable PC gaming is trending toward high-performance, high-price devices for hardcore fans, while Steam Deck currently owns the budget segment.

And what about Nintendo and Sony? Nintendo’s Switch (2017) and Switch OLED (2021) are much older tech, but hugely popular at mass-market pricing (~$300). A Switch 2 is reportedly on the horizon with more power (perhaps Nvidia-based) and a $399–$449 price point – still far below what the Xbox Ally costs ^[48]. Microsoft is clearly not aiming to compete with Nintendo’s approachable pricing, but rather to offer a premium portable for Xbox/PC gamers. As for Sony, their recent PlayStation Portal is a different animal – it’s a $199 streaming-only device that remote-plays PS5 games (not a standalone gaming PC). Sony has no direct equivalent to a Steam Deck or Ally, so Microsoft has an opportunity to fill that void for Xbox fans. If you want a handheld that actually plays Xbox games natively (via Windows Play Anywhere titles) or via Game Pass streaming, the Xbox Ally devices are essentially the only game in town right now.

Early Reactions and Expert Opinions

The reveal of the ROG Xbox Ally and Ally X has generated a whirlwind of reactions in the gaming community. Excitement for an official Xbox handheld is tempered by concerns over the high cost and unproven performance. Here’s a snapshot of what experts and gamers are saying:

“Not convinced yet” – needs to prove its worth: TechRadar’s hands-on preview at Gamescom 2025 found the concept promising but the execution lacking polish. “There is an appeal to having access to your Xbox library on top of Steam, [but] the execution is unwieldy at best and performance was a mixed bag,” wrote Rhys Wood after testing a pre-release unit ^[49]. The hardware felt solid, but early software seemed clunky. Wood noted he hasn’t been “won over” yet: “For me, at least for now, the Xbox Ally hasn’t won me over… but it absolutely could at a more affordable price point, for one” ^[50]. He suggests that being able to play big Xbox titles on the go is a “strong prospect”, but the device’s fate “will live or die by the strength of future Xbox-made games” and their optimization on the handheld ^[51]. In short, if upcoming first-party games (like Fable or Halo) run great on the Ally and nowhere else portably, it could become compelling – but right now, the high price and so-so preview performance make it a tough sell for him ^[52] ^[53].
Priciest Xbox ever – a dubious honor: Media outlets were quick to point out that at $999, the Ally X is “officially the most expensive ‘Xbox’ ever” in terms of MSRP ^[54] ^[55]. PC Gamer’s James Bentley took a skeptical tone: “Xbox’s latest device isn’t a new console: it’s a set of familiar-looking handheld gaming PCs, and very expensive ones at that.” After recapping the specs and prices, Bentley noted the base model is almost identical in GPU power to a Steam Deck that costs half as much, calling that “not a good start for Microsoft.” ^[56] He even advises interested gamers to wait for reviews before preordering, and personally suggests that his money would sooner go to a different handheld like MSI’s Claw 8 if he were in the market for a “beefy handheld” ^[57]. This cautious stance highlights a broader sentiment: the Ally X needs to justify its premium through real-world performance, build quality, and support.
Fan response – enthusiasm vs. price backlash: Among consumers, the reaction has been mixed. Enthusiasts who always wanted an Xbox portable are excited to see Microsoft enter this space. However, many balk at the price. In a poll of 596 readers on Xbox news site Pure Xbox, 73% of respondents said the current price is too high or that they likely won’t ever buy an Ally ^[58]. Only around 14% said they’re on board to purchase the $999 Ally X, and a mere 0.3% committed to the base Ally at $599 ^[59]. Social media and forums echo this divide – some applaud the Ally X’s high-end specs (“finally, a true Xbox portable, even if it’s pricey”), while others joke that “for $1000, I might as well buy a decent gaming laptop or upgrade my PC.” The fact that the Ally X costs about the same as two Xbox Series X consoles (or a PS5 + a Switch combined) has turned into fodder for memes and debates about value.

On the positive side, early previews praise elements like the ergonomics and build quality. The Verge’s Sean Hollister noted that he and colleagues found the new Allys “one of the most comfortable designs we’ve held. (In summary: prongs rock.)” ^[60], referring to the controller-style grips. There’s also optimism that Microsoft’s involvement will push the Windows handheld ecosystem forward – for example, the custom Windows build optimized for handhelds could benefit other devices too, and Microsoft’s new handheld compatibility guidelines for developers may lead to more games running smoothly on portable PCs ^[61]. In other words, even skeptics acknowledge that Microsoft’s support is a big deal for this niche, potentially accelerating improvements in software and driver optimization for all Windows-based handhelds.

Outlook

Moving forward, the big question is whether the ROG Xbox Ally and Ally X can justify their cost and carve out a solid user base. Microsoft is essentially testing the waters: rather than releasing a mass-market handheld to rival the Nintendo Switch, it’s targeting the higher end of the PC gaming market – a segment that is growing but still relatively niche. Upcoming reviews (expected in the weeks before the October 16 launch) will be crucial. If independent tests show the Ally X performing brilliantly – and if the Xbox-specific features truly make playing on Windows easier – then hardcore Xbox and PC fans might be swayed despite the price. On the other hand, if battery life is poor or the software experience feels buggy, critics will surely ask why one shouldn’t just buy a cheaper Steam Deck or a gaming laptop.

Another factor will be how well Xbox Game Studios titles and services leverage the Ally. Microsoft has promised that Game Pass and Xbox Play Anywhere titles (which let you buy a game once for console and PC) will shine on these devices ^[62]. If big upcoming games like Starfield expansions, Fable, or Halo spin-offs run smoothly on the Ally (perhaps with graphics settings optimized by the developers for handheld play), it could entice Xbox loyalists. Microsoft’s commitment to cloud gaming also means the Ally can function as a portable Xbox via streaming – though streaming quality varies with connection and doesn’t fully replace local play. In any case, Microsoft is unifying its ecosystem: whether you’re on an Xbox console, Windows PC, or now an Xbox handheld, you can access the same games and progress. This “play anywhere” promise is compelling, but it may take time and real-world use to convince gamers that it’s worth the steep entry fee.

In summary, the ROG Xbox Ally X is an ambitious attempt to bring console-like convenience to PC handheld gaming, and it comes with an accordingly bold price. It represents a new chapter for Xbox, one where Microsoft isn’t making a dedicated console but is instead certifying a PC as “the Xbox you take on the go.” The initial buzz is equal parts excitement and skepticism. As one outlet put it, “Ready to play anywhere?” – Microsoft is betting that enough gamers will say “yes,” even at $999. The coming months will reveal if that bet pays off, or if the Ally X will serve as a reality check on just how much people are willing to spend for handheld Xbox gaming. As it stands now, the device is a powerful, pricey proposition that has certainly got everyone talking ^[63] ^[64] – time will tell if it lives up to the hype and finds its audience in the crowded gaming landscape.

Sources: The Verge ^[65] ^[66]; Xbox Wire ^[67] ^[68]; PC Gamer ^[69] ^[70]; TechRadar ^[71] ^[72]; Windows Central ^[73]; Pure Xbox ^[74].