Xbox Ally 2026 update roadmap — Improvements for gaming on Windows 11 and next-gen Xbox in detail

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The Xbox Ally is pretty great out of the box, at least if you’re heavily in the Xbox ecosystem.

As someone researching the Xbox Ally, I’ve found it’s a fantastic device if you’re already invested in Xbox Cloud Gaming, Play Anywhere games, or PC Game Pass. It really slots into that existing ecosystem nicely. However, its appeal drops off a bit if you’re not using those services. Plus, even for those of us *within* that ecosystem, the device still feels like it needs some refinement and polish before it’s truly ready.

Things like pre-loaded apps you don’t need, endless initial updates, and confusing differences in how text boxes and controllers work can all make using a new device frustrating.

Microsoft, along with the teams behind Xbox and Windows 11, is working hard to refine an already impressive experience, though there’s still a lot of improvement to be made.

Good news – Microsoft has revealed its short-term plans for the Xbox handheld. Knowing that the next Xbox console will likely use a similar Windows 11 gaming setup, this gives us a good idea of what to expect from the next generation of Xbox.

Here’s what’s coming to the Xbox Ally and Xbox Ally X between now and through 2026.

Xbox Ally 2026 updates that we know about

Xbox has revealed a lot about upcoming improvements for the Xbox handheld devices. These updates won’t be exclusive to Xbox; other Windows 11 gaming handhelds like the Lenovo Legion Go and older ROG Ally models will receive them too. While the features are known, the exact release dates are still a bit unclear, with some changes being implemented gradually over time.

  1. Advanced Shader Delivery

We’re starting to release a key new feature: pre-compiled shaders for each device. Players getting an Xbox Ally may have noticed games spending time “compiling shaders” – this happens because many PC games create visual effects like shadows and lighting specifically for your computer’s hardware. Because PCs come in so many different configurations, games often have to build these effects on the spot.

Consoles, however, are all the same, so developers can create these shaders ahead of time and include them with the game when you install it.

With the upcoming Xbox Ally and the next Xbox, Microsoft is planning to send pre-made shaders directly through the Microsoft Store with certain games. This is already happening with Gears of War: Reloaded on the Ally, and we can expect more games to use this system in the future. Ultimately, it’s likely that all games designed for the next Xbox will include these pre-compiled shaders, similar to how they work on the Xbox Series X|S.

  1. Automatic Super Resolution (Auto SR)

This is arguably the most interesting option, but unfortunately, it’s only available on the higher-priced Xbox Ally X.

Microsoft is introducing new AI technology on the Xbox Ally X that will improve game visuals and performance. This technology uses the device’s special AI processor to upscale games – meaning it can run games at lower resolutions optimized for the portable console, but still make them look sharper and smoother as if they were running on a more powerful machine. Importantly, this happens automatically, without game developers needing to make any changes.

Games that currently have performance issues on the Xbox Ally X should run much smoother next year thanks to a new automatic optimization feature.

  1. New game capture features, powered by AI DVR

The Xbox’s game clip recording feature, which hasn’t been updated much on the Xbox Series X|S, is now receiving some new and interesting features.

As an analyst, I’m excited to see the Xbox Ally X leveraging the NPU to automatically identify and record those great gaming moments, then create shareable highlight reels. It’s a smart move for social media engagement. However, I’m really hoping this update also addresses some broader issues with the Xbox capture system, not just on the Ally X, but on Windows 11 generally. Currently, automatic saving to OneDrive isn’t supported, and trying to use OneDrive as a capture folder can lead to syncing problems. Plus, sharing clips directly from the Xbox capture folder is clunky – you have to exit to the desktop first, which is a frustrating experience.

  1. Xbox Ally will get a big TV update

As a researcher testing the Xbox Ally, I’m excited about an upcoming Windows 11 update planned for early Spring. Right now, connecting external displays – like monitors and TVs – isn’t very smooth. It’s definitely not the simple ‘plug and play’ experience you get with an Xbox console, and that needs to improve, especially if Windows 11 will power future Xboxes. I found that my Ally initially defaulted to extending the display instead of duplicating it, which really impacted performance on my 4K monitor. Honestly, navigating all these little quirks is frustrating, particularly when you’re using a controller.

Microsoft is working to improve how the Xbox handheld (Ally) connects to docks, making it easier to pair controllers for playing games on a TV, and also enhancing the overall display quality.

  1. Improvements to Xbox cloud saves

One of the best improvements coming to Xbox is a clear indicator showing when your game saves have been backed up to the cloud – something Steam has had for a while. Currently, it’s impossible to know if your saves are up-to-date on the cloud, whether you’re playing on Xbox or PC. This can lead to problems if your device shuts down unexpectedly or if there are Xbox service outages, potentially causing different versions of your save file on the cloud and your device. It can be really frustrating to accidentally overwrite the wrong version, and I’ve definitely experienced that myself!

Microsoft is also working to make cloud save syncing more dependable between Xbox, the Steam Deck, and Windows PCs, even when devices are in low-power mode.

  1. Improvements to MicroSD card game storage management

While you can add more storage to your Xbox Ally with a MicroSD card, the process isn’t very smooth and often requires going back to the main menu to configure it. Microsoft plans to make using external storage much easier next year with an update to the Xbox interface.

These are all the updates we know about, but what else is on the cards?

Other Xbox Ally improvements I hope to see through 2026

I often find the performance on the Xbox Ally and Ally X to be a bit slow. Even with Turbo Mode enabled, the system can feel sluggish, especially when starting up or closing games. Sometimes the navigation freezes, and then all my button presses register at once when it finally catches up. I’m hoping to see performance improvements in future updates.

The app would be easier to use if it streamlined how games are organized. Currently, the store and your game library are on separate pages with slightly different features. Combining them into a single, all-in-one page would improve the user experience.

Microsoft is constantly improving Xbox Cloud Gaming, adding support for higher quality 1440p resolution at 60 frames per second for Xbox Game Pass Ultimate subscribers, and we can expect even more games to join soon. However, a surprising side effect of these improvements is that Xbox Remote Play – which lets you stream games from your own console – now performs noticeably worse. It’s odd because Remote Play should offer better quality since your Xbox Series X|S is right there in your home. Hopefully, Microsoft will address this issue and improve the Remote Play experience.

I usually turn my computers off completely when I’m finished using them, but a lot of people are hoping Microsoft will improve how Windows 11 handles sleep and hibernation. Windows’ sleep mode has been known for years to cause problems when you wake the computer up, and the Steam Deck is no exception. With portable gaming devices, it’s important to be able to quickly and easily save battery life without fully shutting down, but currently, putting the device into standby isn’t as smooth as it should be.

Windows 11 still has a lot of smaller problems that need fixing if it wants to be a great platform for gaming, including unwanted pre-installed software and some confusing design choices. It would also be great to see more game developers support Xbox Play Anywhere, and we’re hearing rumors of an Xbox event in November that might reveal more games joining the program.

Microsoft certainly has its work cut out. What would YOU like to see improved?

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2025-11-10 15:11