Nintendo beware: Microsoft’s Xbox Handheld Switch 2 is coming to the throne with the ROG Ally, launching October 16, to rival the Steam Deck, too.
The world of gaming is echoing once again, and this time it is not about the blockbuster Switch 2 from Nintendo. After years of viewing from the sidelines, Microsoft is officially joining the handheld console race—and it is directly targeting the hearts (and wallets) of hardcore gamers.
With a record-shaking launch of Nintendo Switch 2 in June, the portable gaming market exploded back to the spotlight. Nintendo sold 5.8 million units in just seven weeks, which proved that hybrid gaming consoles are playable to live here, both at home and on the move. And now, Microsoft wants it.
Enter a new handheld console, the Xbox Rog Ally, formed in partnership with Taiwanese hardware giant Asus. Microsoft unveiled it at Gamescom in Cologne, Germany, where thousands of gamers stood in line to try it. The device is officially launched on 16 October, although Microsoft is keeping its price tag a closely protected secret—for now.
A true Xbox in your hands
So is Rog really a partner? At first glance, it looks like other handheld gaming devices: a central screen with controllers attached on both sides. But fans will immediately recognize the classic Xbox-style layout, complete with joysticks, triggers, and buttons, feeling that they were raised directly from a traditional Xbox controller.
Jason Ronald, vice president of console development at Microsoft, expressed the company’s vision:
“We are actually designed around an entire ecosystem of equipment and are constructed how they want to allow people to play where they want.”
In other words, it is not just a gadget—it is the latest attempt by Microsoft to tie gamers into the Xbox ecosystem of Microsoft, from console to PC to handheld.
Time makes sense. Microsoft’s console sales have been slipping in recent years, and while
Chasing Nintendo’s Shadow
Of course, Microsoft has a huge mountain to climb. Nintendo Switch 2 should already be a console of 2025. Exclusively, fans have been locked in a long race for Nintendo’s hardware with popular franchises like Mario and Zelda.
Rhys Elliott of Elinia Analytics said, “Nintendo has a unique game that is nowhere else.” “This keeps his audience loyal.”
Microsoft knows that it cannot exclude Nintendo. Instead, it is setting its scenic spots elsewhere.
The real rival: Valve Steam Deck
Microsoft’s biggest competition in the handheld arena is not Nintendo—it’s Valve, the company behind the Steam Deck.
Launched in 2022, Steam Deck quietly sold millions of units, appealing to PC gamers who want the power of gaming rigs in a portable package. Like the ROG partner, the Steam Deck is essentially a gaming PC you can move around.
The founder of the game business, Christopher Dring, explained the angle of Microsoft:
“With ROG as a partner, Microsoft is targeting those who already own Xboxes and potentially a PC. It has a big goal of engagement. If you can get your players to play your games, they will spend more.”
This is a smart strategy. Unlike Nintendo, which thrives on exclusivity, Microsoft wants players that players want to spend time in their ecosystems—whether it is Xbox, PC, or now ROG partners.
Elliot said that the portable console is not to change traditional people:
“They are supplementary tools.”
So instead of pulling the gamers away from the living room console, Microsoft hopes that Rog Ally will keep the players in gaming when they are on the move, and they will get a membership for the Game Pass.
Where is Soni in all this?
Interestingly, Sony, another major console titan, is sitting outside.
76 million units were sold in 2004. After the PlayStation Portable (PSP), Sony tried again with the PlayStation Vita in 2011. But Vita failed to achieve traction, and Soni quietly went away from the market in hand. The company never released the official sales numbers for Vita, a clear indication it did not go according to plan.
Nevertheless, Soni did not completely ignore this trend. At the end of 2023, it launched the PlayStation Portal, a streaming device that allows players to access their PS5 games remotely through internet connections. But because it does not basically run the game—it just shows what is happening on your console at home—its appeal is limited.
Some estimates put the portal sales at about two million units. Millions of people have to cry far away from Switch and Steam Decks.
As Matt Pisketela of Circana explained, “The remote play still affects a very small portion of the overall audience, but it is showing growth and strong potential for the future.”
Rumors already circulate that Sony can try again with a true portable for PlayStation 6. But PS6 is still years away; Microsoft has a golden opportunity to establish a strong leg in handheld gaming.
What is at stake for Microsoft??
For Microsoft, ROG partner is not only about selling hardware—it’s about keeping gamers busy. Every minute a person spends playing an Xbox game, whether it is on the console, PC, or handheld, there is another chance to earn money through Game Pass subscriptions, in-game purchases, and digital sales for Microsoft.
And while Nintendo will always be family-friendly, franchise-powered audiences and Valve will dominate among hardcore PC users, and Microsoft is excluding its own niche: Xbox gamers who want to play anywhere, anytime.
Now the big question is the price. If Microsoft can place ROG Collaborative at an attractive point—cheaper than a high-end gaming laptop but enough to stand above the Switch—it can become a go-to handheld for Xbox fans worldwide.
Handheld wars are back.
One thing is clear: the handheld gaming market is more alive than it has been in more than a decade. Switch 2 proved that portability is still a large-scale sales point. The Steam Deck showed that powerful PC gaming does not have to be tied to the desk. And now, Microsoft is ready to fight for its piece of the pie.
For gamers, it is nothing but good news. More competition means more innovation, more options, and hopefully lower prices.
Will Xbox ROG become a device like the collaborative Switch, or will it struggle to stand out in the already crowded market? It remains to be seen. But one thing is sure: the handheld console war has officially returned—and this time, everyone is watching.