You've probably seen the headlines. For years, the "Xbox handheld" was like Bigfoot—everyone claimed to see it in a patent or a blurry leak, but nobody could actually buy one. Well, it’s 2026, and the landscape has shifted. We aren't talking about "if" anymore; we’re talking about how much of your paycheck is going to vanish when you finally pull the trigger.
Honestly, the pricing strategy Microsoft took with their portable hardware is a bit of a rollercoaster. If you were expecting a cheap Nintendo Switch competitor, you’re going to be disappointed. Microsoft isn't interested in the budget market. They want to put a literal Series X in your backpack, and that kind of engineering isn't cheap.
How Much Will Xbox Handheld Cost? Breaking Down the Tiers
When people ask how much will Xbox handheld cost, they usually expect one number. But that's not how Microsoft is playing this. Following their partnership with Asus for the ROG Xbox Ally series, we have two very distinct price brackets that launched late last year and are still the standard heading into early 2026.
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Basically, you have the "I just want to play my indies" version and the "I want this to be my primary console" version.
- The ROG Xbox Ally (Standard): This one retails for $599.99. It’s the entry-level unit, but "entry-level" is doing a lot of heavy lifting there. It runs on the AMD Ryzen Z2 A chip. It’s snappy, sure, but it’s really designed for 720p gaming if you want those high frame rates.
- The ROG Xbox Ally X (High-Performance): This is the monster. It costs $999.99. Yeah, a grand. It’s got the Ryzen AI Z2 Extreme, 24GB of RAM, and a massive 1TB SSD.
If those prices feel steep, you aren’t alone. Sarah Bond, the President of Xbox, has been on the record defending that $1,000 price tag. Her argument is basically that you’re paying for a "very premium, high-end curated experience." They aren't trying to beat Valve on price; they’re trying to beat everyone on raw, unadulterated power.
Why is it so expensive?
It’s easy to look at a Steam Deck and wonder why the Xbox-branded handhelds cost hundreds more. Part of it is the "Xbox Full Screen Experience" (FSE). Microsoft spent years—and a lot of money—stripping down Windows 11 to create a UI that actually feels like a console. When you turn these devices on, you don't see a desktop. You see a dashboard that looks exactly like your Series X at home.
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You’ve also got to consider the hardware. The ROG Xbox Ally X uses LPDDR5X-800 RAM. That’s faster than what you’ll find in most mid-range gaming laptops. They also packed in an 80Wh battery, which was a direct response to the "my handheld died in 40 minutes" complaints from a couple of years ago.
The 2026 Market: Deals and Discounts
Now, if you’re looking at that $599 or $999 price and wincing, there is some good news. We are finally seeing the first real discounts of 2026. Just this month, retailers like Amazon and Best Buy have been slashing the price of the standard ROG Xbox Ally.
You can currently find the $599 model for $499.99.
Knocking $100 off makes it a much more realistic purchase for most people. At $500, it actually competes with the Steam Deck OLED. It’s a bit of a weird trade-off, though. You get the Xbox ecosystem and better raw performance, but you’re still stuck with an IPS LCD panel while Valve gives you that gorgeous OLED.
What about the "Pure" Xbox Handheld?
There’s still a lot of chatter about a 100% Microsoft-built handheld—not a partnership with Asus, but a "Surface-style" Xbox portable. Phil Spencer has teased this for a while, saying they are "working on prototypes."
If that device ever hits the shelves—likely late 2026 or 2027—don't expect it to be a bargain. Rumors suggest it would be the flagship for the next generation of Xbox hardware. Analysts are projecting a "Pro" handheld could easily land in the $700 to $800 range to stay competitive with the rumored PlayStation handheld specs.
Is the Price Justified?
Kinda. It depends on how deep you are in the Xbox ecosystem. If you have a massive library of digital games and a Game Pass Ultimate subscription, the value is there. Features like "Quick Resume" working on a handheld are a total game-changer. Being able to pause a game on your TV and pick it up exactly where you left off on the bus is the dream we’ve been promised for a decade.
But let's be real: $1,000 for a handheld is a lot of money. You can buy a literal Series X and a decent 4K TV for that. Or a very capable gaming laptop. You’re paying a massive "portability tax" here.
Regional Pricing Variance
Keep in mind that these prices are US-centric. If you’re in the UK, the ROG Xbox Ally started at £499, while the high-end X model hit £799. In Australia and parts of Europe, prices have fluctuated even more due to local taxes and shipping costs.
Final Verdict on the Cost
If you want the Xbox handheld experience right now, you need to budget at least $500 to $600. That’s the "buy-in" price. If you want the version that won't feel obsolete by next Christmas, you’re looking at $999.
Microsoft is betting that gamers are willing to pay for "premium." They saw the success of the Steam Deck and the ROG Ally and decided that instead of a race to the bottom, they’d race to the top. It's a bold move, especially with the Nintendo Switch 2 sitting at a much more comfortable price point (around $450).
Your Next Steps:
- Check for Sales: If you're on a budget, do not pay $599 for the standard model. It goes on sale for $499 almost every other month now.
- Evaluate Your Library: If most of your games are on Steam, buy a Steam Deck. The Xbox handheld only makes sense if you are heavily invested in the Xbox store or Game Pass.
- Wait for the "Pro" Announcement: If you can hold out until the end of 2026, we might see the first "official" Microsoft-manufactured handheld, which could potentially offer better integrated hardware for a similar price.