Microsoft has needed to respond to SteamOS ever since the Steam Deck launched three years ago, and it has steadily been tweaking its Xbox app and the Xbox Game Bar on Windows to make both more handheld-friendly.

Microsoft and Asus team up to put Windows on an AMD-powered handheld, and apparently that makes it an Xbox. "An Xbox you can hold in your hands." That's what Microsoft has just announced, teaming up with Asus to put together a handheld device with Xbox controls, Xbox UI, and Xbox games... well, sort of.

During the Xbox Games Showcase, Microsoft finally revealed its handheld in a partnership with Asus. The ROG Xbox Ally will come later this year and will be available in two variants.The new portable comes in two versions: the ROG Xbox Ally and Xbox Ally X.