After prolonged speculation, Xbox has officially presented its first handheld console, the ROG Xbox Ally, created with Asus. This announcement came during the Xbox Games Showcase on July 8, positioning Microsoft within the handheld gaming market alongside competitors such as the Nintendo Switch and Steam Deck. The idea of a portable Xbox has been in discussion for some time, and Phil Spencer, the head of Xbox, confirmed its development in late 2024. The new device will debut with two models during this holiday season.