Microsoft finally stopped playing coy. After years of Phil Spencer "accidentally" leaving prototypes on his bookshelf during livestreams, the Xbox handheld is a real thing you can actually buy—well, technically two things. But if you were expecting a budget-friendly $300 Game Pass machine to rival the Nintendo Switch, you might want to sit down.
Honestly, the pricing for the new Xbox handhelds—developed in partnership with ASUS—sent a bit of a shockwave through the community when it was officially confirmed late last year. We aren't looking at "console" pricing here. We're looking at high-end portable PC pricing.
Depending on which version you’re eyeing, your wallet is going to feel it. The entry-level model is one thing, but the flagship? It’s basically the price of a mid-range gaming laptop.
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The official price breakdown: How much will the new Xbox handheld cost?
Microsoft and ASUS launched two distinct versions of the handheld on October 16, 2025: the ROG Xbox Ally and the ROG Xbox Ally X.
The ROG Xbox Ally (the standard white model) launched at $599.99.
Then there’s the big brother. The ROG Xbox Ally X—the "high-performance" beast—retails for a staggering $999.99.
You've probably noticed that's a huge gap. A $400 difference isn't just a few extra gigabytes of storage; it's a completely different class of hardware. In the UK, those prices translated to £499 for the base model and £799 for the Ally X. If you’re in Australia, you’re looking at about **AU$1,599** for the high-end version.
Why the massive price tag?
It’s easy to look at a $1,000 handheld and think Microsoft has lost its mind. But Sarah Bond, President of Xbox, was quick to point out that ASUS really took the lead on the hardware side. They didn't build a closed-off console like the Vita. They built a Windows 11 PC that thinks it's an Xbox.
The base model uses an AMD Ryzen Z2 A processor. It’s solid, but it’s remarkably similar to what’s inside the Steam Deck. You get 16GB of RAM and a 512GB SSD. It’s "fine," but for $600, it’s a tough sell when you can get a Steam Deck OLED for less.
The $999 Ally X is where the real tech lives. It packs the AMD Ryzen AI Z2 Extreme, 24GB of high-speed RAM, and a 1TB SSD. It also has a massive 80Wh battery, which is basically double what you find in most other handhelds. ASUS basically took every complaint people had about the original Ally and threw money at the problems until they went away.
Comparing the Xbox handheld to the competition
If you're trying to figure out if the Xbox handheld is worth the cash, you have to look at what Valve and Lenovo are doing. The market is crowded now.
- Steam Deck OLED: Currently sits around $549 for the 512GB model. It’s cheaper than the base Xbox handheld and, frankly, the OLED screen makes the Xbox's IPS display look a bit dated.
- Lenovo Legion Go 2: This one is also in the $900–$1,000 range. It’s the closest direct competitor to the Ally X, especially with its massive screen.
- MSI Claw 8 AI+: This Intel-based rival is hovering around $1,100, making the Xbox Ally X look slightly more reasonable—though "reasonable" is doing a lot of heavy lifting there.
The reality is that Microsoft isn't trying to beat Valve on price. They can't. Valve subsidizes the Steam Deck because they know you'll buy games on Steam. Microsoft is trying to sell you a "premium" experience where your Game Pass library just works natively without you having to jump through Linux hoops.
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Is it actually a "True" Xbox?
This is where things get slightly murky. While it’s branded as an Xbox handheld, it’s still running Windows 11. Microsoft did add a "Full Screen Experience" that mimics the Xbox dashboard, and it supports Quick Resume-style features, but it's not a portable Series X.
Some critics, like those over at TechRadar, have called the pricing a "fiasco." There were even rumors that Microsoft and ASUS were looking to subsidize the price further after seeing the initial negative reaction to the leaks. But once the $999 price was set in stone, they stuck to it, leaning on the "value" of the hardware specs rather than trying to win a price war.
Should you buy it or wait?
We’re already seeing the first signs of price movement. Since we've entered 2026, the standard ROG Xbox Ally has seen its first major discount on Amazon, dropping to $499.99 (a 17% cut).
The flagship Ally X? That’s still holding firm at $999. It's selling out in some places, but some analysts suggest that might be due to low supply rather than overwhelming demand.
If you’re a die-hard Xbox fan with a massive digital library, the integration is better than anything else on the market. But if you’re just looking for the best bang for your buck, that $1,000 barrier is a tall wall to climb.
Your next steps:
- Check the current Amazon listings: If the base model is still at $499, it’s a much better value than it was at launch.
- Evaluate your library: If most of your games are on Steam, the Steam Deck OLED is still the smarter financial move.
- Look for bundles: Microsoft is currently including three months of Xbox Game Pass Ultimate with new units, which offsets the cost by about $50.
Keep an eye on the "Open Box" deals at retailers like Best Buy. Since these are Windows devices, people often return them when they realize they aren't as simple as a Nintendo Switch, and you can often snag an Ally X for closer to $800 if you're lucky.