Microsoft unveils new official Xbox handhelds with an optimized custom version of Windows

Microsoft has officially unveiled the Xbox Ally and Xbox Ally X, its first Xbox-branded handheld gaming devices developed in collaboration with ASUS. More significantly, these devices debut a customized version of Windows 11 designed specifically for portable PC gaming, featuring deep changes intended to improve performance and efficiency. The Xbox App in this version reduces idle power draw by up to 66 percent and reclaims up to 2GB of RAM by disabling non-gaming processes and core parts of the Windows traditional experience, including the desktop itself, offering a more SteamOS experience.

Users will be able to access their entire library of PC games through this modified OS, including major gaming storefronts beyond the Xbox App and Xbox Game Pass such as Steam, GOG.com, Epic Games Store, Battle.net and more. It is also important to note that only PC games are supported, and traditional Xbox console titles will not be playable unless they are part of Microsoft's Play Anywhere program, which grants access to both platforms with a single purchase.

Beyond performance improvements, the Xbox app launches in a full-screen, controller-friendly mode and allows system login using controller buttons mapped to passcodes, similar to Xbox consoles. Users can multitask between apps like YouTube and Discord using a controller and onscreen keyboard. Additional utilities like Xbox Game Bar and ASUS Armoury Crate are preinstalled for fast access. This new version of Windows will debut exclusively on the Xbox Ally and Ally X, launching in the 2025 holiday season with pricing and pre-order details yet to be revealed, and will roll out to other Windows handhelds later on.