Recently, Ampere analysts predicted that the Nintendo Switch 2 would outperform all portable gaming devices together in sales this year. Contrary to what might seem alarming for the developers of Xbox Ally and Steam Deck, there is no need for worry.
To be fair, the Switch 2 shouldn’t be compared head-to-head with Xbox Allies or Steam Decks as these devices don’t directly compete with Nintendo’s versatile console, which functions both as a handheld and a home gaming system.
The real battle is Windows versus SteamOS on gaming handhelds.
It’s clear that both Microsoft and ASUS ROG are aware of this fact. Consequently, the initial version of Xbox Ally, while sharing the same name as the original Xbox, is strategically designed to challenge the Steam Deck, not the Switch 2.
Under the Xbox brand, this portable gaming device for PC could potentially succeed, provided that Microsoft delivers effectively on their end.
Xbox Ally and Steam Deck have very different focuses than Switch 2
Prior to moving forward, let me clarify that it’s important to understand that Xbox Ally isn’t necessarily in direct competition with the Switch 2. While they are both gaming consoles, their target audiences, game libraries, and unique features might make them more complementary than competitive.
In essence, it’s fair to assert that the Switch 2 could be considered a rival to both the Steam Deck and Xbox Allies, much like mobile cloud gaming can be seen as competing with traditional console gaming on an Xbox Series X.
From where I stand, these two gadgets are primarily designed with distinct purposes, features, and intended users, making them less likely to be direct competitors in the immediate future.
According to prominent analysis firm Ampere, it is predicted that more Nintendo Switch 2 gaming consoles will be sold this year compared to the total number of handheld PC gaming devices ever sold. The report also indicates that while about 56% of Steam Deck owners have a Nintendo Switch, only a small fraction, around 1.3%, of Nintendo Switch users primarily rely on the Steam Deck as their main console. (Published on June 4, 2025)
It’s quite possible for me to pen down several pages discussing this subject, yet let me simplify it: Nintendo deliberately opts for older technology in their hardware, allowing them to concentrate more on developing distinctive gaming experiences.
By employing this approach, the Japanese game corporation can enjoy greater profit margins due to lower production costs for their consoles and wider appeal among cost-conscious consumers, thereby reaching a larger market segment.
Xbox and ASUS ROG, on the other hand, tend to use current-gen hardware and cutting-edge tech.
Additionally, Nintendo prioritizes innovation in single-player and local multiplayer experiences using their own intellectual property and accessories, whereas ASUS ROG and Valve’s handhelds primarily cater to single-player and online multiplayer PC games developed by third-party creators. (It’s worth noting that while Valve does create games, they do not do so to the same extent as Nintendo.)
Absolutely, the Switch 2 is capable of running graphically rich AAA titles such as Cyberpunk 2077, similar to a handheld gaming PC. However, it’s not equipped to handle the latest graphically intensive games that are better suited for devices like Xbox Series and Steam Deck PCs.
Moreover, differently from the Steam Deck and Xbox Alloy, the Switch 2 is not built to offer users the flexibility of a personal computer for desktop use or web browsing. Instead, it’s specifically geared towards being a dedicated gaming device (with a hidden method to access a web browser as a workaround).
Simply take a look at the specifications of both the Xbox Ally and the Steam Deck, and you’ll find that they share more similarities than one might initially assume.
The Xbox Ally specs specifically target the Steam Deck
In my previous discussion, I contrasted the Xbox Ally with the ROG Ally, as they are both portable gaming devices produced by the Asus ROG brand.
To be honest, as I delved deeper into the specifics of these gadgets, it struck me that the Xbox Ally shares a lot of similarities with the Steam Deck – check out my comparison between Xbox Ally and Steam Deck for more insights.
To begin with, the initial model of Xbox Alloy features 16GB RAM and a 512GB SSD, which is comparable to what you’d find in a 512GB Steam Deck OLED. However, many high-end handheld devices are equipped with 32GB RAM and 1TB SSD. As a result, the specifications of Xbox Alloy can be considered more moderate compared to some others, leaning towards the level of the Steam Deck.
As an Xbox enthusiast, you might be surprised to know that the Xbox Ally employs a fresh AMD Ryzen Z2 A SoC, which shares the same classic architecture as the custom AMD APU found in the Steam Deck. Both these chips boast four CPU cores with eight threads, and eight Compute Units each.
| Processor | CPU Cores & Threads | GPU Cores | TDP |
| AMD Ryzen AI Z2 Extreme (Xbox Ally X) | 8 cores, 16 threads w/ XDNA2 NPU (Zen 5) | 16 CU (RDNA3.5) | 15-35W |
| AMD Ryzen Z2 A (Xbox Ally) | 4 cores, 8 threads (Zen 2) | 8 CU (RDNA2) | 6-20W |
| Custom AMD APU (Steam Deck LCD) | 4 cores, 8 threads (Zen 2) | 8 CU (RDNA2) | 4-15W |
| Custom Nvidia Tegra T239 (Switch 2) | 8 ARM Cortex-A78C cores, Unknown threads | Unknown | 5-30W (Depending on the mode) |
| Custom AMD APU (Steam Deck OLED) | 4 cores, 8 threads (Zen 2) | 8 CU (RDNA2) | 4-15W |
You can learn more at our AMD Ryzen Z2 Series processor guide for gaming handhelds.
In simpler terms, the processing power of the Xbox Ally will likely be comparable to that of the Steam Deck, and it may not match up to the Z1 Extreme processor found in the previous generation ROG Ally.
While the Xbox Ally sporting a less potent processor compared to other PC gaming handhelds might appear contradictory, it’s actually a strategically shrewd decision on the part of ASUS ROG and Xbox. This choice indicates that the Xbox Ally is designed explicitly as a rival to the Steam Deck, focusing on running Windows software instead.
In essence, the Xbox Allies represent Microsoft’s premium offerings in the struggle between portable gaming devices based on Windows versus those built around SteamOS. This is the reason why Microsoft has decided to participate in this competition.
It’s smarter to compete against the aging Steam Deck than the brand-new (and thriving) Switch 2
Instead of focusing on competing with Xbox Ally against Nintendo Switch 2, it would be wiser for Xbox Ally to target the Steam Deck as a competitor at this point in time. Challenging the Switch 2 might not yield favorable results.
On June 5, 2025, the long-awaited Switch 2 hit the market, breaking records with sales exceeding 3.5 million units globally (kudos to Bloomberg for the info). It’s predicted to have a prosperous year ahead. Right now, it seems unwise to challenge its dominance.
The same can’t exactly be said about the Steam Deck, though.
It’s worth noting that the Steam Deck has seen great success since its debut in 2022. Yet, some original equipment manufacturers have joined the market of portable PC gaming, introducing top-tier devices that deliver superior performance, but at a higher price point.
The Steam Deck continues to be the preferred portable PC gaming device for many due to several factors, with a key reason being its cost-effective pricing without compromising on performance.
Yet, it’s becoming evident that the Steam Deck is showing signs of being outdated. Many contemporary, graphically intense games run smoothly on alternatives such as the ROG Ally, Lenovo Legion Go, and MSI Claw 8 AI+, but the Steam Deck struggles to handle them effectively.
According to our related platform, Tom’s Guide, they have discussed the question mark surrounding the potential release date for a possible Steam Deck 2.
Now could be an opportune moment for rivals to challenge Steam Deck’s dominance as the best portable PC gaming device, especially since Valve has yet to unveil a new device. That’s exactly what Xbox Ally is aiming to accomplish.
Xbox + ASUS ROG is a match made in PC gaming handheld heaven
Beyond the Steam Deck, the ASUS ROG Ally stands out as one of the top choices for portable PC gaming. Therefore, it’s quite strategic that Xbox is partnering with ASUS ROG.
Transforming Xbox’s branding and introducing a redesigned Windows 11 specifically tailored for gaming handhelds, similar to SteamOS in functionality, could effectively address numerous issues associated with Windows handhelds. This improvement becomes crucial given the widespread availability of SteamOS across various devices. To ensure success, it is imperative that this transformation is executed skillfully.
Currently, the cost of the Xbox Ally hasn’t been disclosed as of now. However, considering it lacks an OLED screen, employs a less complex processor, and has limited memory and storage, it seems that Microsoft is aiming for affordability compared to other PC gaming handheld devices in the market.
For Xbox Ally to thrive, its pricing should be comparable to that of the Steam Deck in the market.
As a researcher studying the gaming market, I have previously come across the Legion Go S SteamOS, which could be considered a rival to the Steam Deck. However, its price tag exceeding that of the Steam Deck has made potential buyers hesitant. Therefore, it’s imperative for the Xbox Ally to carefully consider and set its pricing in order to attract consumers.
Here’s hoping Xbox Ally plays its cards right
The Xbox Allies and Steam Decks are head-to-head portable devices for PC gaming, whereas the Switch 2 stands alone as a versatile console.
I really enjoy my Steam Deck, but lately, it seems outdated as it struggles to run some of the newer games I’m keen on playing. Since there’s no confirmed release date for the Steam Deck 2 yet, this could be an opportune moment for both Xbox and ASUS ROG to introduce a device that builds upon its predecessor.
If Microsoft successfully enhances the gaming experience on portable devices using Windows, as planned, it could alleviate numerous issues associated with PC handhelds. Notably, Microsoft aims to displace SteamOS from its dominant position in the handheld market, and the Xbox Ally is their primary strategy for achieving this goal.
We’ll have to wait and see what they’ve cooked up.
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2025-06-18 14:10