Xbox Ally X Priced at $999, More Than Xbox Series X

Microsoft's latest venture into handheld gaming is here, and the pricing is already sparking debate. The ROG Xbox Ally has been priced at $599.99, and its premium sibling, the Xbox Ally X, commands a hefty $999.99. What makes that pop is that both versions cost more than an Xbox Series X console, potentially the most expensive Xbox-branded device to date, and a clear signal that Microsoft thinks handhelds can wear premium price tags.

Pre-orders kicked off on Friday, September 26, with global availability set for October 16. The thousand-dollar question is not only sticker shock, it is whether this is the future of handhelds or Microsoft's costliest experiment.

Breaking down the Xbox Ally lineup: What justifies these price points

So what are Microsoft and Asus actually selling here? The hardware tells you exactly where they want to sit in the market.

The entry-level ROG Xbox Ally starts at $599.99 and aims straight at Windows handheld gaming's biggest pain point. You get AMD Ryzen Z2 A processor, 16GB of RAM, and 512GB of storage. The hook is the software. The Asus ROG Xbox Ally is a Windows machine with AMD Ryzen Z2 power at its core, and the Xbox gaming interface loads by default, which is exactly what handheld Windows devices have struggled with.

It is not just a spec bump. Both devices debut with an all-new variant of Windows 11 designed to prioritize gaming performance, an attempt to turn a fiddly desktop OS into something that can stand toe to toe with SteamOS.

The premium Xbox Ally X demands $999.99 and backs it up with serious kit, AMD Ryzen AI Z2 Extreme processor, 24GB of RAM, 1TB of storage, and an 80Wh battery. The AI tag is not just marketing, it is there to support incoming AI-enhanced gaming features so the device does not age out quickly.

Numbers to chew on: the Z2 Extreme sees a 12% performance uplift in Cyberpunk 2077 at 25W, and dropping to 17W shows a more significant 22% difference. In plain English, the Ally X shines when you dial back power to save battery, which is exactly how most people play on the go.

Both devices feature identical 7-inch touchscreen displays with Full HD resolution and 120Hz refresh rates. Same screens, different muscle under the hood.

How this reshapes the competitive handheld gaming landscape

Look at pricing through a market lens, not just a spec sheet. The 256GB Steam Deck is available for as low as $320. At first glance, $600 seems steep. But Microsoft is not racing to the bottom.

The edge is ecosystem and polish. Windows isn't optimized for handheld devices, whereas SteamOS is built specifically for the Steam Deck. Microsoft answered by shipping an all-new variant of Windows 11 designed to prioritize gaming performance. That move effectively sets up a third ecosystem alongside Steam and Nintendo.

Context matters, too. The original ROG Ally cost $700 when it launched in 2023, and the ROG Ally X came out in 2024 for $800. Microsoft lowered the entry, then carved out a high-end tier, a clear split for different buyers.

Where should you expect performance to land? Asus' consumer VP stated the Xbox Ally will offer 720p gaming, while the Ally X targets 900p-1080p gaming on the go. That sets expectations before you even touch a settings slider.

Market validation: Early demand reveals consumer appetite

The fastest reality check is sales. The Xbox ROG Ally X is actually selling out, and there is limited availability showing for UK buyers on Asus' direct site. If people are paying a grand and stock is tight, there is a real audience for premium handhelds.

Distribution backs that up. The Ally X will be a Best Buy exclusive when it comes to third-party retailers, while the regular Ally will be available at Amazon, Ant Online, and Walmart. The X gets the enthusiast channel, the base model gets the big-box spread.

And buyers do not sound upset about value. One early purchaser said at £799.99, they actually think it's a fair price for what's inside: a chonky AMD Ryzen AI Z2 Extreme processor, 24GB RAM, and a roomy 1TB SSD. Framed as a tiny PC, not just a handheld, the math hits differently.

There is even a little launch sizzle, a U.S.-specific promotion for pre-orders through the Asus Shop, with 10 winners selected for premium accessory bundles.

Strategic implications: Microsoft's long-term handheld gaming vision

This pricing signals more than a product tweak, it is a strategy shift. Microsoft teamed up with Asus' ROG division to develop these handhelds, a partnership approach that lets Microsoft enter handhelds without building a factory footprint.

The ecosystem play goes beyond specs. Both devices support Xbox control configurations and allow access to Xbox PC and Xbox Play Anywhere games, plus other PC storefronts like Steam. Not a walled garden, more like a front door to all your libraries with an Xbox welcome mat.

On performance tiers, Microsoft believes the Xbox Ally performance will be in line with the Steam Deck, while the Ally X should be significantly beyond that. And yes, the public line remains consistent, Asus' consumer VP stated the Xbox Ally will offer 720p gaming, while the Ally X targets 900p-1080p gaming on the go. These are portable alternatives, not replacements for a living-room box.

How this lands will shape the handheld scene. If early sell-outs hold, expect more high-end attempts from other players. If the price turns people away, it will harden the idea that handhelds should stay affordable first, fancy second.

The Xbox Ally pricing strategy reads like Microsoft's boldest hardware gamble in years, testing whether console-level prices fit in a backpack. With both devices launching globally on October 16 and early sell-outs already occurring, the holiday rush will answer whether thousand-dollar handheld gaming is evolution or overreach.