The first Xbox-branded handheld console is here, but it’s not made solely by Microsoft. Instead, it's a partnership between Asus and Microsoft for a new version of the latter's ROG Ally handheld consoles,

Microsoft and Asus have been collaborating closely on these two new Xbox Ally devices over the past year, and Yen says Microsoft and Asus “share a joint obsession” on these new handhelds.

Asus makes heavy revisions to the Ally for a new Xbox-branded model, though it's still running Windows 11 underneath. Two versions will launch at the end of 2025.