The Steam Deck has yet to find a real competitor in the PC handheld gaming device battle. Other hardware companies, including Asus, Lenovo and MSI have tried, but so far, their devices keep falling short. Asus plans to try to take another swipe at the crown, though, this time with the help of Microsoft.

In June, the two revealed their partnership for a new handheld device: the ROG Xbox Ally. This handheld will come in two variants and will attempt to bring the Xbox console experience to a portable device.

Will this be enough to outdo the Steam Deck or will the Xbox Ally just be another wannabe?

How much will the Xbox Ally cost?

Neither Microsoft nor Asus has confirmed an official price yet. One thing for sure is that the Xbox Ally won’t be cheap.

Multiple leaks suggest the price will be 599 euros for the Xbox Ally and 899 euros for a higher-end version, the Xbox Ally X. That does leave the question of what the price will be in the US. Most likely, the price will be the same just in dollars, as that is the typical practice for gaming hardware prices.

One uncertainty is whether the price will be adjusted before launch because of tariffs. Microsoft recently increased the prices of its Xbox Series consoles and Asus has done the same with its laptops and its current ROG Ally lineup.

When does the Xbox Ally come out?

Like with the price, Microsoft and Asus have yet to confirm an actual release date. However, the same leak that mentioned a possible price also leaked a day when the handheld device will come out.

According to Dealabs, the Xbox Ally release date might be Oct. 16. This timing gives Asus a chance to make the device widely available in time for the holidays and Black Friday sales.

What’s the difference between the Xbox Ally and Xbox Ally X?

There are two versions of the Xbox Ally: the lower-priced Xbox Ally and the higher-priced Xbox Ally X.

The key differences between the two are in their processors, storage and memory. The Xbox Ally will have the AMD Ryzen Z2 A Processor, while the Xbox Ally X will use the faster AMD Ryzen AI Z2 Extreme Processor. Memory will be different, with the lower-priced Xbox Ally having 16GB of LPDDR5X-6400 and the higher-cost handheld coming with 24GB LPDDR5X-8000. Both will come with SSD storage but the Xbox Ally will have 512GB and the Xbox Ally X will have 1TB. The Xbox Ally X will also come with a bigger battery but with a faster processor and more memory. It’s not clear if that difference in capacity translates to a longer battery life.

What makes the Xbox Ally different from the Steam Deck?

The most notable difference between the Xbox Ally and the Steam Deck is the operating system. Like the ROG Ally, the Xbox Ally will also use Windows 11, while the Steam Deck uses Valve’s SteamOS.

Even though every PC game works with Windows, handheld gaming devices running Windows have had serious issues, as the OS implementation has been a bit buggy. Portable consoles like the ROG Ally, MSI Claw and Lenovo Legion Go simply don’t run well with full Windows because the OS is designed for laptops and desktops and not handheld devices. SteamOS, however, is designed to run almost every game on Steam without issues and regardless of device size.

The Xbox Ally changes that by giving it an Xbox interface. This would be similar to how the Xbox app on PCs works for running games. It would also be able to download Xbox games directly to it, remote play them off a console or stream them via Xbox Cloud.

Another big difference is the hardware. The Steam Deck came out in 2022 and it was the first mass-produced handheld gaming device for PC. At the time, Valve had to use custom AMD processors but since then, AMD has produced more processors for handheld devices, which are now much more powerful in just a few years. The Xbox Ally would also have faster RAM. Both the improvement in processors and RAM should significantly increase the number of games the Xbox Ally can run versus the Steam Deck, which is already struggling to run newer games at 30fps.

Externally, the Xbox Ally will come with the same size 7-inch display but it will have a higher refresh rate of 120Hz, a brighter screen at 500 nits and increased resolution at 1080p. There will also be some slight differences in the physical size of the Xbox Ally, which will be a little bigger and heavier. Another difference from the Steam Deck is that the Xbox Ally controls will be more similar to the Xbox controller.

Microsoft and Asus have a large hill to climb if they plan to have the Xbox Ally dethrone the Steam Deck. It will be especially tough if Valve decides to announce the Steam Deck 2 soon.