Microsoft has finally shown us a large part of the strategy it’s devised to keep Windows on handheld PCs, and combat the threat of SteamOS. It’s a plan with many moving parts, it seems, but so far it looks like the right set of moves.
Just a day or two after I wrote that Microsoft needed an answer to SteamOS fast, the Xbox showcase in June 2025 revealed both how Windows would change to suit handheld gamers, and how Microsoft’s approach to gaming hardware might change with it.
The Xbox Ally Debuts a New Experience for Windows on Handheld
The biggest issue with PC handhelds so far has been Windows 11. It was never meant for use on gaming handhelds, and so the performance, features, and interface are entirely unsuitable for that purpose. Compared to SteamOS, which is built from the ground up to run on a handheld PC, Windows 11 was a poor fit.
Microsoft had indicated in the past that the company was working on an overhaul of Windows 11 to make it better for devices like the ASUS ROG Ally, but kept those plans close to its chest.
ASUS
At the showcase we saw comprehensive changes to Windows 11, including doing away with the desktop in favor of an Xbox-style interface. In fact, unnecessary Windows components like the desktop aren’t even loaded, saving on RAM and processing power. There’s a long list of known (and probably unknown) changes, but suffice it to say that they bring Windows 11 more in line with SteamOS, but without the software compatibility worries.
Play Anywhere Fills the Architecture Gap
It seems that going forward, Microsoft will be pushing its “Play Anywhere” feature in more games. This has been around for ages, of course, but it is hit-and-miss, especially when it comes to third-party games. However, there were numerous Play Anywhere titles showcased at the presentation, suggesting that Microsoft wants to do as much as possible to make up for the fact the handheld in question is not an Xbox.
What I mean by that is we’re looking at a standard handheld PC with an Xbox button. The same device you can buy without Xbox branding and run exactly the same software on. A native Xbox handheld that could play Xbox games may have been on the cards, but it seems (as per our friends at Game Rant), it may be delayed indefinitely. I guess it might depend on how this initiative pans out. If it’s a success, there’s little reason for a native handheld.
That said, I do hope to see the same Xbox engineers that brought Xbox 360 and original Xbox emulation so seamlessly to the later consoles work their magic on PC.
Dimensions
11.02 x 4.37 x 1.08 inches
Brand
ASUS
The ASUS ROG Ally X (2024) is a handheld gaming PC designed to take your favorite titles on-the-go. With the AMD Z1 Extreme processor and 24GB of RAM, you’ll find that the ROG Ally X packs a punch in the power department. It’s capable of playing games like Call of Duty: Black Ops 6 at over 100 FPS using recommended settings. USB4 and USB-C allow the ROG Ally X to be converted to a desktop through a USB dock, making it even more versatile.
Cloud Gaming Aims to Do the Rest
Microsoft
Until it’s possible to play Xbox-exclusive games on PC hardware (legally), the other parts of Microsoft’s plans revolve around its cloud gaming service. Between that and the native PC Play Anywhere titles, this “Xbox” handheld could cover most if not all the same library of games on Xbox Series consoles.
Personally, I’m not a fan of cloud gaming, and it’s not practical (or available) everywhere in the world, but it’s a legitimately valuable feature. Given how well (and inexplicably) the PlayStation Portal sold, this is undoubtedly a key part of the overall strategy,
Microsoft’s Open Hardware Strategy Is a Strength
Lenovo
The whole “this is an Xbox” marketing push is clearly a way to reposition Microsoft’s own native hardware as just a minor part of a constellation of products and services with the Xbox brand on it. Xbox isn’t a console, it’s the brand itself now.
Since Xbox consoles have now consistently sold poorly compared to the competition over multiple generations, partnering with existing hardware makers is a logical move. Just like SteamOS, it looks like the new Windows 11 experience will result in a consistent console-like experience across different devices without the cost and risk of developing bespoke console hardware.
It doesn’t have to stop at handheld PCs either. This new approach will work just as well on a desktop PC. Just like Valve’s (possibly returning) Steam Machines, you could put this gaming-focused version of Windows on a desktop PC connected to a TV in your living room and be on your merry way.
Related
If Valve’s Rumored New Steam Machine Is Real, Microsoft Should Be Very Worried
Bill Gates might get steamed.
The Xbox Console Is Clearly Not the Center of the Xbox Universe Anymore
The Xbox-branded ROG handheld and new Windows 11 experience isn’t really just about handheld gaming. This is just the tip of the iceberg and, in my opinion, the first look at a broader strategy to diffuse Xbox over all platforms, and move the resource drain of native hardware development out into the general PC hardware space.
Related
Xbox Is Now the Betamax of Gaming Consoles
Talk about backing the wrong horse.
This was exactly Microsoft’s recipe for success when it created DOS for the IBM PC and its subsequent clones. As opposed to its rival at the time, Apple, which has been a computer hardware company from day one. Rarely has a Microsoft foray into hardware been a success, and the company’s strength is in software and services.
Right now, Microsoft claims that a next-generation of Xbox hardware is still coming, but if this experiment with the ROG handheld works out, who’s to say that the next “Xbox” isn’t just a regular PC with this modified version of Windows?
