Microsoft Unveils Xbox Ally Handhelds with Full-Screen Xbox on Windows

Microsoft and Asus have teamed up to launch two new ROG Xbox Ally handheld PCs, marking a significant step in handheld gaming. These devices feature a new full-screen Xbox experience that boots directly into the Xbox app on Windows, designed to provide a seamless and optimized gaming environment.

This initiative is Microsoft's response to the growing competition from SteamOS and Valve's Steam Deck, aiming to combine the best aspects of Xbox and Windows for handheld gaming. The new experience minimizes traditional Windows elements like the desktop wallpaper and taskbar, focusing system resources on gaming performance.

One of the standout features is the revamped Game Bar, accessible via the Xbox button. It offers quick access to device settings, Asus’ Command Center, and Microsoft's Gaming Copilot, alongside a handheld-friendly task switcher for smooth app and game transitions.

Performance improvements are notable, with Microsoft reclaiming about 2GB of memory for gaming by disabling non-essential Windows processes in full-screen mode. Additionally, battery efficiency has improved significantly, reducing idle power draw to one-third compared to traditional Windows desktop mode.

The Xbox app now acts as a unified launcher for PC games from multiple storefronts including Steam, Epic Games Store, and Xbox Game Pass, simplifying game management on handhelds. Microsoft is also developing a handheld optimization program similar to Valve’s Steam Deck verified initiative to highlight games best suited for these devices.

Importantly, these improvements will extend beyond new devices. Microsoft plans to roll out the full-screen Xbox experience to existing ROG Ally models and other Windows handhelds starting next year, signaling a broader shift in Windows handheld gaming.

This strategic overhaul positions Microsoft to better compete with SteamOS and Linux-based handheld gaming solutions, potentially reshaping the future landscape of portable PC gaming.