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Coming this holiday.

ASUS and Microsoft have partnered for two new Xbox branded handheld devices. Both the ROG Xbox Ally and ROG Xbox Ally X are two handheld devices that are expected to launch holiday 2025 "in select markets."

The ROG Xbox Ally is being promoted as a 720p gaming device while the Ally X is more geared towards 1080p resolutions with much higher performance. You can almost think of these as the Xbox Series S vs Series X of handhelds.
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Microsoft isn't satisfied with the performance yet.

Production on a first-party handheld Xbox device has reportedly been put on hold. Jez Corden from Windows Central claims that Microsoft is sidelining the handheld in order to work on improving Windows 11 gaming performance, particularly for third-party handheld devices.

Though nothing was ever announced by Microsoft, it has long been rumored that the company was working on their own handheld gaming device. An official...