Microsoft (MSFT) is on a mission to bring Xbox and Windows closer than ever, aiming to shape the future of gaming that you can enjoy both at home and on the go.
In a big leap forward, they’re unveiling the ROG Xbox Ally line, a series of handheld gaming consoles developed alongside ASUS. With the base model priced at $599 and a high-performance $999 variant, both models boast vibrant 7-inch displays and are capable of running PC games natively, or uno from the cloud. Plus, you can easily stream games from your Xbox Series S or X!
This move to integrate Xbox with handheld gameplay signifies a fresh direction in Microsoft’s gaming plan, which generally revolved around home consoles and PC setups. Now, they’re gearing up to compete head-to-head with Valve’s Steam Deck handheld console, which ranges between $399 and $649.
On the flip side, Sony (SONY) has also launched its own portable option, the $199 PlayStation Portable, allowing cloud gaming with a PlayStation 5, while Nintendo’s (NTDOY) $449 Switch 2 similarly lacks compatibility with third-party game stores, unlike the Ally.
Despite this evolution, it’s important to note that both Sony’s PlayStation 5 and Nintendo’s Switch continue to outshine the Xbox Series lineup in sales.
Sarah Bond, Xbox president, noted, “It’s been nearly two years since I took up this role, and I quickly realized that while Windows is the top platform for AAA gaming, there’s potential for Xbox to do so much more with it globally.” She shared the insights during an interview alongside Microsoft’s president of Windows and devices, Pavan Davuluri.
Bond elaborated, “We’ve just scratched the surface on how we can leverage Windows’ strengths to enhance gaming experiences. The Ally line is our stepping stone in this journey.”
“Bond’s team inspired us to rethink handheld gaming, returning to core principles became essential,” Davuluri expressed. “Our goal is to seamlessly unify the Xbox power with the Windows platform within this new handheld format.”
The collaboration between the Windows and Xbox teams holds great promise in elevating both areas of Microsoft.
Gaming industry analyst Lewis Ward pointed out, “Having a major operating system like Windows at Microsoft’s fingertips gives them a competitive edge that sets them apart from other game developers and hardware makers… with the exception of Apple and Google.”
Integrating Xbox with Windows is also expected to boost subscriptions for Microsoft’s Game Pass, which features monthly prices ranging from $9.99 for Game Pass Essential to $29.99 for Game Pass Ultimate, allowing users access to a vast selection of Xbox, PC games, and cloud gaming options via Xbox Cloud Gaming.
This recurring revenue strategy has proven beneficial for Windows in both enterprise and consumer markets, and Microsoft aims to channel similar success toward Xbox. Even though other platforms also provide subscription services, Game Pass is positioned as Microsoft’s top priority moving forward.
Ward reflects, “Microsoft has a long-term, 10-year vision that examines what Xbox can achieve alongside the ambitious direction Windows is taking, pinpointing opportunities where both can blend to create a more cohesive gaming world.”
“They envision a subscription-based future—where ownership becomes obsolete—and everything is available on the cloud… this is their holistic view for entertainment, transcending beyond just gaming,” Ward concluded.
As Bond indicated, Microsoft is also collaborating with AMD (AMD) on a new home console for Xbox, showing commitment to a gaming landscape where players can enjoy content across multiple platforms—including TVs, PCs, and smartphones.
“We’re striving for a more immersive play experience. With the current fragmented nature of gaming across devices, users may lose precious entertainment moments to alternatives at hand,” Bond said.
“Our vision is clear: It shouldn’t be solely about bringing in new gamers, but rather curating an ongoing, engaging experience that extends across all Windows devices, establishing Windows as the epicenter of gaming, regardless of the device screen being used,” she added.
Contact Daniel Howley via email at dhowley@yahoofinance.com. Find him on X/Twitter as @DanielHowley.
