Microsoft and Asus have unveiled two ROG Xbox Ally devices featuring a new full-screen Xbox experience tailored for handheld PCs. This update represents Microsoft’s effort to merge Xbox and Windows more effectively on portable gaming devices, aiming to challenge Valve’s SteamOS.
Since the Steam Deck’s launch, Microsoft has been adapting the Xbox app and Xbox Game Bar for better handheld compatibility. Now, the company is overhauling Windows itself for these devices. The Xbox Ally X boots directly into a custom Xbox interface on Windows, focusing on a streamlined gaming experience by bypassing typical Windows productivity features like the desktop and taskbar.
Users can exit the full-screen Xbox mode to access the standard Windows desktop, though it is hidden by default to reduce distractions. The revamped Xbox app aggregates all PC games from Steam, Epic Games Store, Xbox Play Anywhere, and Game Pass under one library.
The updated Game Bar, activated by pressing the Xbox button on the device, provides quick access to settings, Asus’s Command Center, and Microsoft’s new Gaming Copilot. Long pressing the button launches a handheld-optimized task switcher for seamless app navigation.
Microsoft reports performance gains from this tailored environment, freeing about 2GB of memory for gaming. Power efficiency has also improved, with the full-screen experience reducing idle power consumption to one-third compared to running the Windows desktop on the same device.
Additional enhancements include a controller-friendly Windows lock screen allowing PIN entry and navigation without a keyboard. Microsoft is collaborating with major PC game storefronts to optimize their full-screen support on this platform.
The Xbox app’s aggregated gaming library will be available on all Windows 11 devices, enabling users to view their Steam games alongside Xbox titles. Microsoft plans to introduce a handheld optimization program similar to Valve’s Steam Deck Verified, helping users identify games best suited for these devices.
Handheld users can also access their Xbox console game libraries via cloud streaming or console Remote Play, though native play is limited to supported PC versions or Xbox Play Anywhere titles.
This full-screen Xbox experience will debut on the ROG Xbox Ally and Xbox Ally X, with plans to update existing models and extend support to other Windows handhelds starting next year.
With Valve supporting SteamOS on the same ROG Ally hardware, a direct comparison between Microsoft’s and Valve’s handheld gaming systems will soon be possible, signaling an emerging competition between Windows and Linux platforms in the handheld PC gaming market.