Over the past year, Microsoft and Asus have teamed up to develop not just one, but two new handheld gaming devices under the ROG Xbox Ally lineup. These devices are part of Project Kennan, and they bring a new full-screen Xbox interface on top of Windows. This interface has been specially made to be easier to use on handhelds by hiding Windows’ complex parts and focusing purely on gaming.
The white ROG Xbox Ally is built for 720p gaming, while the more advanced black ROG Xbox Ally X supports 900p to 1080p gameplay. Just like previous models (ROG Ally and Ally X), both of these new handhelds feature a 7-inch 1080p screen with a 120Hz refresh rate and VRR (Variable Refresh Rate) support.

The Xbox Ally runs on a newly introduced AMD Ryzen Z2 A chip, along with 16GB LPDDR5X-6400 RAM and 512GB M.2 2280 SSD storage. On the other hand, the Xbox Ally X is powered by a more powerful Ryzen AI Z2 Extreme processor, paired with 24GB LPDDR5X-8000 RAM and a 1TB SSD. While the hardware is similar to Asus’ earlier handheld PCs, the software experience is where big improvements have been made.
Asus’ VP of Consumer, Shawn Yen, told The Verge that the company understands the difficulties gamers have faced trying to use Windows with joysticks and buttons. He admits it hasn’t been smooth, but now, with Microsoft’s help, they aim to take this experience to the next level. He also said both companies have a “shared obsession” over perfecting these devices.
This partnership led to the creation of a new full-screen Xbox experience for Windows, made especially for handhelds. Users will boot straight into this Xbox-like interface, avoiding the usual Windows desktop. A dedicated Xbox button on the device helps users jump right back to this mode easily, much like an actual Xbox console.
Instead of loading the full desktop and background apps, this interface takes you directly into the Xbox PC app, where users can see their games from the Microsoft Store, Battle.net, and other popular stores. All your games — whether from Xbox, Game Pass, Steam, Epic Games, etc. — appear in one unified library, similar to how the GOG Galaxy launcher works. Microsoft even plans to let users access their full Xbox console library via Cloud Gaming or Remote Play.
The goal is to let gamers launch any game — whether installed, streamed from the cloud, or from an Xbox Series X on the same network — without hassle. Though the feature hasn’t been widely tested yet, that’s the promise.
To improve ease of use, Microsoft has also made the Xbox PC app and Game Bar more handheld-friendly. For example, now you can log in from the screen using the controller, with no need to tap the screen. The Game Bar also lets you switch apps, launch Discord, or change settings — all without touching the display.
The design of the new Xbox Ally handhelds also mimics the feel of an Xbox controller, with curved, ergonomic grips. It feels like an Xbox controller with a screen placed in the middle. somewhat like the PlayStation Portal. These grips are shaped so players can comfortably hold the device and easily reach all buttons and triggers.
The Xbox Ally X even comes with impulse triggers, just like modern Xbox controllers — which means you can feel feedback while racing or shooting, adding a more immersive experience. The Ally X also includes a USB-C 4 port with Thunderbolt 4, enabling connection to powerful external GPUs. It also has another USB-C 3.2 port and a UHS-II microSD card slot. The standard Xbox Ally has two USB-C 3.2 ports instead.
While no performance benchmarks have been shared yet — and the chips are still untested — both companies are putting more focus on battery life and efficiency this time.
Yen noted, “Efficiency is our new superpower,” saying that these devices will run cooler, quieter, and longer on battery. AMD also mentioned earlier this year that the Z2 Extreme chip is its most powerful and efficient handheld processor yet, while the Z2 A chip is expected to be based on the Steam Deck’s Van Gogh chip, which is known for good battery life.
The Xbox Ally now comes with a 60Wh battery, which is 50% bigger than the original ROG Ally’s battery. The Xbox Ally X packs an 80Wh battery, which is one of the biggest in any handheld gaming device right now. Thanks to changes in Windows, Microsoft says that when the system is idle or asleep, it now uses about one-third the battery compared to before.

For gamers wanting even more performance, both handhelds support docking with Asus’ XG Mobile, which can attach a powerful RTX 5090 GPU to boost graphics even further.
Both of these new Xbox Ally handhelds are expected to launch during the holiday season this year. Microsoft and Asus will announce pricing and preorder info in the coming months.