Microsoft recently revealed its partnership with Asus to launch two Xbox Ally handheld devices later this year, signaling a shift toward a more PC-like Xbox experience.
These handhelds run Windows but boot directly into a full-screen Xbox user interface, bypassing the traditional Windows desktop. The Xbox app acts as a launcher for games—including Steam titles—and apps like Discord, expanding Xbox beyond a single console to multiple devices and screens.
The reveal included an 11-minute behind-the-scenes video featuring Carl Ledbetter, a veteran Microsoft designer. Xbox president Sarah Bond described the devices as offering the “power of the Xbox experience in your hand,” emphasizing the blend of Xbox capabilities with Windows flexibility.
Reports indicate Microsoft’s own handheld Xbox hardware was recently shelved, as the company concentrates on its new Xbox software platform. However, Xbox Ally devices from PC makers like Asus are seen as part of the broader next-gen Xbox ecosystem, testing the fusion of Windows and Xbox.
Xbox Gaming CEO Phil Spencer highlighted unprecedented collaboration between the Windows and Xbox teams to make PC gaming feel more like a console experience, with seamless access to games and apps.
Despite the excitement around Xbox Ally, the handhelds only run PC versions of games natively, not most Xbox console titles. Many games outside the Xbox Play Anywhere program require streaming via Xbox Cloud Gaming. This presents branding challenges, as gamers expect native Xbox console performance.
Long-term, Microsoft aims to address game compatibility through emulation and is investing in forward compatibility initiatives. Until then, Xbox Play Anywhere and cloud streaming bridge gaps, enabling players to access games across devices.
This strategy reflects Microsoft’s goal of offering gamers choice—allowing multiple manufacturers to produce Xbox consoles running Windows with a consistent user experience, accessible across hardware types.
Alongside Xbox news, Microsoft announced several updates:
- A refreshed Start menu for Windows 11 testers featuring a larger, scrollable interface with better app visibility.
- Relocation of the 2026 Build developer conference from Seattle due to attendee experience concerns.
- An AI-powered enhanced search for Microsoft Edge browsing history that tolerates typos and phrases, with on-device data processing for privacy.
- Fixes to Windows 11 crashes caused by incompatibilities with Easy Anti-Cheat and recent security updates.
- Confirmation of the release timeline for upcoming games: “Gears of War: E-Day” in 2026, alongside anticipation of a new Halo and Forza title.
- Improved media controls and picture-in-picture features in Microsoft Edge.
- The launch of Copilot Vision for Windows, an AI assistant extension that can analyze apps and guide users through tasks.
- Insights from CEO Satya Nadella about evolving cooperation with OpenAI and expanding AI model usage.
These developments underscore Microsoft’s broader ambitions to integrate gaming, AI, and Windows more closely, aiming for a flexible and unified ecosystem across devices.