Microsoft also revealed details on how game compatibility works for the handheld gaming PCs.

Microsoft and Asus revealed most of the key details for the ROG Xbox Ally and ROG Xbox Ally X at Gamescom. While pricing remains unclear, Microsoft

The most notable difference between the Xbox Ally and the Steam Deck is the operating system. Like the ROG Ally, the Xbox Ally will also use Windows 11, while the Steam Deck uses Valve's SteamOS.

Is a Steam Deck Certified-style system on its way for Windows-based handhelds like the Ally and Legion Go? We'll have to wait and see.

Microsoft announced Wednesday during Gamescom 2025 that not only will its Xbox Ally handhelds be released on October 16, but the company is spinning up a new initiative to support optimized gaming on these devices called the Handheld Compatibility Program.

ROG Xbox Ally and ROG Xbox Ally X will be out in time for games like The Outer Worlds 2, Ninja Gaiden 4, and Keeper

Not least because the ROG Xbox Ally will also let you download apps for Steam, GOG, and the Epic Games Store, among other digital shopfronts, and you'll theoretically be able to enjoy games across those libraries seamlessly, though I'm not sure yet whether they'll be marked with the same performance badges as native Xbox games.

Analyst firm Omdia predicts that the handheld PC market will grow significantly in 2025 with consumers purchasing 2.3 million handhelds in the year.

Still, 2025 is a very different time from 2022. Nintendo is back with a vengeance, and there are more powerful handhelds like the ASUS ROG Ally. Even Xbox is looking to get in on the action, so if you’ve not picked up a Steam Deck as of yet, have you missed your chance, especially as rumors swirl of a Steam Deck 2?