Microsoft prepares for the launch of its most expensive handheld console yet

In 2025, Microsoft plans to launch its first handheld games console, the ROG Xbox Ally, which will compete against the new Nintendo Switch. This upcoming console has recently been rumored to have a high price point, potentially exceeding the cost of the Xbox Series X, with projections around £449 for the standard model and £799 for the more advanced ROG Xbox Ally X. The handheld devices will be developed in collaboration with Asus and its gaming sub-brand, ROG, and are expected to run on a dedicated Xbox operating system instead of Windows. They are designed to provide easy access to Xbox games as well as cloud gaming via Game Pass, which would appeal to existing customers as well as attract new ones by being compatible with third-party PC apps such as Discord and various game storefronts. The ROG Xbox Ally is essentially an upgraded version of existing handheld hardware and aims to deliver high-performance gaming in a portable format. Its specifications include advanced AMD processors and increased RAM, enhancing the overall gaming experience. This strategic move marks Microsoft's entry into the handheld console market, representing a shift in their gaming strategy. The company hopes to initiate a foothold in an emerging segment of gaming hardware dominated by competitors like Valve’s Steam Deck and the upcoming Nintendo Switch, while also expanding its presence in the evolving landscape of portable gaming. With its ambitious plans, Microsoft is entering a market that has seen increased competition in recent years. Handheld consoles have gained popularity, especially with the success of devices such as the Steam Deck, which, despite its lower price point, offers substantial gaming capability. The introduction of the ROG Xbox Ally and ROG Xbox Ally X highlights Microsoft's commitment to innovating within the gaming hardware sphere, particularly as gaming habits continue to shift towards more portable solutions. Ultimately, the pricing strategy for Microsoft's new handheld console will play a crucial role in its success. As it stands, the pricing is expected to align closely with existing premium gaming handhelds, suggesting that Microsoft is positioning the ROG Xbox Ally series as high-end gaming options rather than budget-friendly devices. This strategy could attract serious gamers looking for portability and performance, which is central to their gaming experiences. The successful launch of these devices could lead to an expanded Xbox ecosystem, integrating both PC and console gaming experiences under a unified branding.