Discussions between Microsoft and ASUS aimed at reducing the pricing for the ROG Xbox Ally and Xbox Ally X fell through, according to insider sources. Initially, there were talks about implementing subsidies to lower the anticipated costs, but these negotiations led to no concrete outcomes.

Following their unveiling in June 2025, the ROG Xbox Ally and Xbox Ally X were marketed as high-end handheld gaming devices priced at $599 and $999 respectively. Reports suggested that the two companies had considered price reductions to address fan backlash over initial price leaks. However, instead of decreasing the prices, they opted for the current rates ahead of the products’ launch on October 16, 2025.

The ensuing price strategies were also reportedly influenced by U.S. tariffs affecting imports, notably from China, where a significant part of Microsoft’s production takes place. This aligns with broader trends of rising costs, as exemplified by an upcoming increase for the Xbox Series X/S consoles starting October 3.

Despite the hefty price tags, pre-orders for the ROG Xbox Ally X are quickly selling out, demonstrating ongoing strong interest in this new mobile gaming option.