Well, it finally arrived. We've heard whispers of a new Xbox handheld in the works, and the company has just confirmed what we were hoping. During an Xbox Games Showcase, Microsoft revealed that it's partnering with ROG to create the "Xbox Ally," a handheld console for those on Team Green.

The ROG Xbox Ally is a long-standing rumor finally come true

During the Xbox Games Showcase 2025, Microsoft revealed that it's working alongside ROG to bring its handheld dreams to life. Akin to how we have the Asus ROG Ally consoles, Microsoft is introducing its "ROG Xbox Ally" and "ROG Xbox Ally X" devices in partnership with ROG, and yes, it runs Windows. During the presentation, it was claimed that the console will work with PC game stores like Windows PC, Battle.net, Steam, and GOG.

Interestingly, the company noted that everything revealed in the showcase will also work on the ROG Xbox Ally. So, if something in the video catches your eye, you won't have to worry about compatibility.

We were also made aware of an interview Microsoft had with The Verge. Jason Beaumont, vice president of experiences at Xbox, explains why the ROG Xbox Ally is a big step up for Windows handhelds:

“We were able to take people who have been working on the Xbox OS for 20 years or more and have them work directly on the Windows codebase and start reimagining what that operating system looks like for this form factor. These two things combined led us to build a bunch of features.

“When the player boots into the full-screen experience, there is a whole bunch of Windows stuff that doesn’t get loaded/ We’re not loading the desktop wallpaper, the taskbar, or a bunch of processes that are really designed around productivity scenarios for Windows.”

This is reassuring to know, given how we've seen proof that Windows handhelds get noticeable performance improvements when SteamOS is installed on them instead. Here's hoping the company can get the OS lightweight enough to catch up with the competition.