PC gaming handhelds have flooded the market at this point, yet with each new model or device, there are always a handful of things you wish they did better. Whether it be clunky software, uncomfortable controls, or not being able to access a certain library of games, some form of shortcoming has been present across handheld gaming PCs . But after getting a brief hands-on demo with the Xbox Ally X, I think we might be the closest we’ve been to having the ideal gaming handheld when it launches during the holiday season this year.

The Xbox Ally X and Xbox Ally are the upcoming handheld gaming PCs made in collaboration between Asus (makers of the ROG Ally ) and Microsoft, and they’re specifically designed for the Xbox platform. Small things like having the Xbox button to pull up the Xbox app, streamlining the app itself, and optimizing PC games so they run properly without having to fiddle with too many settings go a long way in making these appealing in a sea of options already out there. Those little things matter, but so does raw graphics power, especially if these systems are meant to keep up with PC games now and in the future.

The Numbers, What Do They Mean?

So, let’s get the specs out of the way. The Xbox Ally X is the top-of-the-line model, sporting the AMD Ryzen AI Z2 Extreme APU, 24GB of RAM, and a 1TB SSD powered by a 80Wh battery – the base-level Xbox Ally rocks the Ryzen Z2 A chip, 16GB of RAM, and a 512GB SSD with a 60Wh battery. Both use the same 7.0-inch screen, which is a 1080p (1920×1080) resolution IPS display with a 120Hz refresh rate, and it’s capable of variable refresh rate (VRR) and FreeSync to reduce screen tearing when performance fluctuates. Nothing has been shared on battery life as it’s still being tested and fine-tuned.

For those who don’t live in the realm of PC hardware, the AI Z2 Extreme is a newly-announced variant of the Z2 Extreme, a very powerful APU (Advanced Processing Unit) that sits at the cutting edge of all-in-one processors for portable gaming. Announced at CES 2025 , it’s the new generation of the Z1 Extreme that powers the current top-level ROG Ally X , and that chip is already quite impressive. While I only got hands-on with the Xbox Ally X, we already know that the base model Xbox Ally is going to be noticeably scaled-down in performance since the Z2 A chip is much weaker than its Extreme counterpart. The Z2 Go that powers the Legion Go S was a letdown , and looking at the hard specs, the Z2 A looks to be similar, and underwhelming for pure performance. However, if this paves the way for a more affordable option that can still manage playable frame rates without sacrificing too much in visuals, that’s not a bad thing.

“ Even if you don’t pick up an Xbox Ally X, you’ll likely see its influence in other handhelds you might be interested in.

While the actual gameplay experience with the base-level Xbox Ally is still in question since I didn’t get to use it, I must say that the Xbox Ally X delivers an optimal gameplay experience. I played Gears of War: Reloaded for about 15 minutes running at 1080p with high settings, AMD FSR 3.1 at Quality mode, 16x anisotropic filtering, and maintained a smooth 60 fps the entire time – it’s worth noting that the system was running in Turbo mode, which increases power to get higher performance at the expense of heat and battery life. Granted, Gears of War: Reloaded is a remaster of an Xbox 360-era game, which is not to diminish what seems to be a great overhaul of the original Gears of War, but there’s a difference between that and trying to run, say, Doom: The Dark Ages at maximum settings. That’s also to say, we’ve yet to see the full potential of the Xbox Ally X’s Z2 Extreme.

I’m excited to dig into performance when the time comes and benchmark more demanding games, but that’s all I can really speak to with first-hand experience. However, the meaningful leaps in tech aren’t necessarily in graphics and frame rates, because anyone who has used a Windows-based handheld gaming device knows how much a headache it is to use. The user experience of Windows 11 on the original ROG Ally fluctuates between just fine and absolutely miserable, and this is the biggest problem these new systems address.

User Experience Matters

The Xbox Ally systems run a super-slim version of Windows underneath the newly built Xbox app. It’s still a PC at the end of the day, but Windows has been modified to cut out unnecessary processes and defer tasks that don’t contribute to running games while still allowing for wide compatibility for other applications. And the Xbox app has evolved to be easily navigable with a gamepad while more neatly packing your library within the familiar UI. What’s even better is that the Xbox app lets you import your games from other storefronts such as Steam, Epic Games, and/or GOG so you can aggregate all your games in one place – with everything centralized in the Xbox app, it effectively functions like an all-in-one launcher.

Xbox Ally X – Xbox App UI View 7 Images

There’s still room for improvement, since the design of the Xbox app itself could be more intuitive and user friendly when it comes to how games and options are laid out, and I’m hoping it makes those strides before launch as it is still an early build of the system. I’m still skeptical of its AI Copilot integration as well, which feels like it’s being wedged into places it doesn’t need to be. Yes, using a Ryzen AI processor lets something like this possible, but it being pitched as a way to ask for help and guides in games isn’t going to sell me on the idea.

The other major stride that comes with the Xbox Ally is its ergonomic design; think of it as an Xbox controller split in half with a screen and powerful system slapped in the middle of it. It feels like you’re holding an actual controller, so it has the comfort and performance you expect from a proper gaming platform, which was a notable downside of the original Asus ROG Ally design. I’d say it matches the Steam Deck in terms of ergonomics, but the Xbox stick layout, button feel, and impulse triggers give the Xbox Ally the edge. The downside is that this thing is quite bulky at 290.8mm wide, 121.5mm tall, and 50.7mm deep, and while the full controller-style grips are nice, I’m not sure if I’d call this thing sleek. I’m not sure if it’s the most portable device relative to its counterparts, but I suppose that’s the compromise you have to make.

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New Tech Won’t Come Cheap

The biggest question that now remains is price point. Powerful hardware, a streamlined operating system, and the ideal ergonomics for a gaming handheld are all key areas that are addressed with the Xbox Ally X, but it shouldn’t come at a cost that boxes out a large swath of interested folks. I suppose that’s what the lesser Xbox Ally model is for, but I’m still wary of its performance based on the on-paper specs we have for now. Asus and Microsoft aren’t sharing price ranges yet, given that it’s still a ways out and market conditions are fluctuating by the minute, but I can guarantee that this thing isn’t going to be cheap – and what I would consider “reasonably priced” for a device of this caliber would still be sticker shock in the console space.

Regardless of where the Xbox Ally X falls in terms of pricing, an important knock-on effect is that it’s pushing the Windows and Xbox ecosystem to better accommodate handheld PCs. With iteration, it’ll get even better and it’d be nice to see other handhelds adopt those advancements in the future. So, even if you don’t pick up an Xbox Ally X, you’ll likely see its influence in other handhelds you might be interested in, and hopefully everybody wins.