Pricing May Doom Asus' Xbox Ally Handheld Before It Even Gets a Fair Shot

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There hasn’t been any truly new Xbox console hardware in five years. Instead, the first real novel Xbox device isn’t made by Microsoft at all. Asus is designing a new handheld that looks like an Xbox controller split in half with an added screen. While Microsoft has reportedly delayed its own first-party handheld PC, it will need to rely on hardware partners like Asus to push its grand new vision for Xbox hardware. If Microsoft wants it to be a success, it needs to ensure people can actually afford the damn thing.

The Asus ROG Xbox Ally and Xbox Ally X may cost the same, if not more, than today’s current ROG Ally and ROG Ally X. Insider Gaming first spotted the price leak posted by Spanish-language site 3DJuegos. The leaks are based on screenshots taken from alleged store listings that popped up on Google. The alleged price of an Asus ROG Xbox Ally with a lower-power AMD Ryzen Z2A chip could cost 600 euros. The Xbox Ally X with the more powerful Ryzen Z2 Extreme APU may demand 900 euros. In U.S. dollars, each handheld would be $700 or $1,050, respectively. Before your knickers get too twisted, remember that companies set different prices for different markets. However, thanks to fluctuating Trump tariffs, there is no way to know if Americans will spend even more than people overseas for the Xbox-branded hardware.

First, let’s make it clear Asus still has many months to cement its pricing scheme for the upcoming devices. The company’s next handhelds with Xbox branding likely won’t hit the scene until later this year. These leaks could simply be stores guessing at what the price may be based on current hardware costs in the EU. Either way, the leaks raise a red flag considering the difficulties keeping prices low on handheld PCs. Asus increased the cost of its 1TB ROG Ally X in the U.S. from $800 to $900, likely due to tariffs. We had hoped Microsoft would prop up the price of Asus’ next gaming hardware, but the pricing leak has us doubting just how much stake the maker of Xbox has put into its branded hardware venture.

Currently, the best, cheapest handheld you can get is the LCD version of the Steam Deck, though most customers opt for the prettier and better-performing OLED version at $550. Lenovo’s current slate is also slightly more affordable, with the SteamOS version of the Legion Go S at $600 (it was originally proposed at $550 before tariffs). Windows devices are, on the whole, more expensive than those with Valve’s Linux-based SteamOS. The Legion Go S with the same Z2 Go chip, more RAM, and Windows OS costs $730. The cost is likely indicative of the price for Windows licensing. If the Xbox Ally is the same price as the ROG Ally, then it would mean Microsoft is not offering Asus a discount despite the company sticking a fully functional Xbox button on its device. That’s a problem, considering total handheld PC sales—even for popular devices like the ROG Ally—are relatively small despite the number of new devices hitting the scene.

The ROG Xbox Ally is running a variant of Windows built specifically for handhelds. It’s built around the Xbox app, but it should allow you to play games from other game launchers, including Steam and Epic Games Store. Microsoft has not yet stated if it will support smaller launchers like GOG or if it will support emulators. The device can still boot into the full Windows OS, so it’s not as if you’ll be kept out of playing all your games.

There are still many things going for Asus’ upcoming Xbox-branded handheld. It has access to Game Pass games, for one, but it will include Thunderbolt 4 USB-C with support for DisplayPort 2.1, making it easier to connect to an external monitor or TV. There’s a chance it may also support Asus’ own eGPU, which will provide it more graphical oomph for playing intensive games when docked. But if Xbox really wants to create a console-like PC experience, it needs to keep it open enough for users to tinker with. We still don’t know if it will be as easy to customize the Xbox app experience as SteamOS. Valve’s platform has a large and dedicated developer community that pushes the device beyond a mere portable box for your Steam games. A Windows handheld could have that and more, thanks to all the legacy Windows apps available today. However, if the Xbox Ally costs way more than a Steam Deck, we can’t imagine it will be a branded device that breaks Microsoft’s gaming slump.

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