Xbox Ally X supply woes continue, as ASUS admits demand exceeded expectations — “We are working with closely with key component suppliers to ramp up production.”

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The first true OEM gaming Xbox launched this year, named the Xbox Ally.

A few months ago, I was the first to share details about the Xbox Ally, known internally as Kennan. This device was officially unveiled at Xbox’s June presentation and confirmed to be a collaboration between Xbox and ASUS, falling under ASUS’s ROG gaming brand.

The Xbox Ally, which uses AMD’s Z2-A and Z2 Extreme processors, is essentially a testing ground for Microsoft. The version of Windows running on the Ally is likely a preview of the operating system that will power the next generation of Xbox consoles, offering a full Windows experience.

Okay, so I’ve been using the Xbox Ally, and overall it’s pretty great. But there are definitely some things that could be smoother and easier to use. The Xbox Ally X is seriously powerful – right now, it’s the most powerful handheld gaming device out there, and playing Xbox games on it is the best I’ve ever experienced. But I’m really wondering how it holds up with everyday use – is it *actually* good in the real world?

During its investor meeting today, ASUS announced it anticipates its Ally handheld gaming devices will bring in between $96 million and $160 million in revenue this quarter. The company expects this to stabilize between $130 million and $160 million in future quarters.

Asus reports strong demand for the Xbox ROG Ally X handheld, leading to limited availability. They anticipate sales of NT$3 to 5 billion (approximately $96 million to $160 million) from the Ally series this quarter, with sales expected to level out around NT$4 to 5 billion ($130 million to $160 million) per quarter going forward. This information is current as of November 13, 2025.

Most Windows PC manufacturers offer many different versions of their hardware to appeal to specific customers and price ranges. Currently, Razer sells three main laptop models with various configurations. ASUS’s ROG line is similar, offering a wide range of products including accessories, PC parts, laptops, and now, portable gaming devices.

During a recent call with investors, ASUS acknowledged they underestimated how much demand there would be for the higher-end Xbox Ally X, which costs $999 and up.

I was listening in on the Q&A with Morgan Stanley, and someone from ASUS explained that they were early to the handheld gaming PC market with the original ROG Ally, launching it two or three years ago. They noted that this new type of device, particularly those running Windows, has really taken off and proven to be popular.

We’ve successfully positioned ourselves as a premium brand and created a new area for growth in gaming with the release of our third-generation ROG Ally last month. We worked closely with Xbox on this device, and the response since launch has been very positive, especially for the higher-end models, which are exceeding our sales forecasts. Currently, demand for these premium versions is outpacing supply. We’re working hard with our suppliers to increase production and meet this demand. We aim for the ROG Ally to remain a key product in our ASUS gaming lineup.

The Xbox Ally is a glimpse into the next-gen Xbox

The Xbox Ally and Ally X offer a preview of Microsoft’s future Xbox plans. The next generation of Xbox will run full Windows, using features from the Ally – like Full Screen Experience and the Xbox Game Bar – as the main way players interact with the console. Similar to Steam, Microsoft intends to allow other hardware manufacturers to build their own devices compatible with the Xbox ecosystem.

As a huge fan, I’m really excited to see Microsoft bringing Windows and Xbox closer together! They’re working hard to make Windows feel more like a console – easier to use with a controller, better for multitasking, and perfect for relaxing in the living room. It’s all about a more seamless and comfortable experience, and I can’t wait to see how it all comes together.

There’s a significant challenge with this approach. Microsoft is juggling two priorities for Windows: building advanced AI features for businesses and trying to convince gamers – who are generally wary of AI – that these features are worthwhile. This split focus could hinder their success.

The Xbox Ally still feels quite a bit like a PC, which can be frustrating for players used to traditional consoles. You’ll often get warnings from Windows Firewall when launching online games, and many games display confusing pop-up messages. Plus, games sometimes lose full-screen mode, forcing you to tap the screen to regain control – a problem when using it with a TV. While there are other small issues, hopefully these can be fixed with updates over time.

Another challenge is that it’s harder to release games on Xbox compared to other platforms. This means many popular AAA titles and indie games that are readily available on Steam aren’t available on the Xbox PC experience offered by the Ally. Microsoft is trying to simplify the publishing process for Xbox PC, but it remains to be seen if they can do so quickly enough.

The ASUS ROG Ally appears to be quite successful. This raises the question of whether other manufacturers might create their own versions – perhaps a Razer or Lenovo Xbox? It feels like everything is becoming an Xbox these days, and we can likely expect even more similar devices in the future.

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2025-11-14 08:10