Operating System & User Experience - The industry expresses concern that the device fundamentally remains a Windows PC, diminishing the desired Xbox experience [1] - There's a call for a more streamlined and seamless "Xboxy" interface on top of Windows, potentially integrating the Microsoft Store and other features [2][3] - The industry suggests the possibility of removing the online account requirement and improving account integration, possibly with Steam [3] Performance & Hardware - The operating system's performance is considered weaker than expected, especially compared to the Steam Deck, despite potentially having more power [4] - The device's performance is reportedly lower even when plugged into a power outlet, which should provide enhanced performance [5] - The industry indicates that the devices do not represent the leap forward that was anticipated [5]

We’re very bullish on the handheld future of gaming. But we’re not bullish on the new ROG Xbox Ally. The Verge’s Sean Hollister joins the show to explain why this Xbox-branded device barely feels like an Xbox, and why it’s definitely not a threat to the Steam Deck, before he and David debate whether the future of Xbox is even in good hands. After that, The Verge’s Hayden Field walks David through a couple of important recent studies, asking the same basic question: is AI making us dumb? Finally, Sean return ...

Core Insights - The ROG Xbox Ally X represents a significant development in the portable gaming market, reflecting current trends in PC gaming and indicating a potential direction for the industry [2] Product Overview - The name "ROG Xbox Ally X" combines the ROG and Xbox brands, but its complexity may hinder casual recognition, as many gamers may simply refer to it as a portable Xbox [3][4] - The device operates on Windows 11, which adds complexity but is somewhat mitigated by the Xbox launcher and Asus' Armoury Crate [5][6] User Experience - The interface of the ROG Xbox Ally X is seen as overly complex, with multiple launchers and the Windows 11 interface, contrasting with the simpler experiences offered by traditional consoles [7][9] - The device allows for three primary ways to play: cloud gaming via Xbox Game Pass, direct downloads from the Xbox Store, and installation of various games through the Windows OS [10][11][13] Market Positioning - The ROG Xbox Ally X enters a competitive market, directly challenging established consoles like the Nintendo Switch and the Valve Steam Deck, with the latter dominating the high-end portable gaming space [14][17][18] - Research indicates that the Steam Deck holds a significant market share, accounting for two-thirds of sales in the high-end portable gaming segment, which the ROG Ally aims to penetrate with Microsoft's backing [18] Future Implications - The potential for Microsoft to ensure that games in the Xbox Store are compatible with the ROG Xbox Ally X could significantly benefit the mobile gaming community [19] - The ROG Xbox Ally X has the potential to redefine mobile high-end gaming by offering a versatile device capable of running a wide range of PC games [20]

Product Overview & Performance - ROG Xbox Ally and Ally X aim to streamline Windows-based gaming handheld experience through partnership with Xbox [1] - Ally is more accurately a handheld PC, with Xbox game compatibility limited to Xbox Play Anywhere titles [3][4] - Ally allows offline play of Xbox Game Pass titles, expanding game access, but Game Pass subscription costs $10, $15, or $30 per month [6][7] - Ally X has enhanced specs: AMD Ryzen Z2 Extreme, 24 GB memory, 1 TB SSD, 80Wh battery, weighing 715 g, priced at $1,000, while Ally has AMD Ryzen Z2A, 16 GB memory, 512 GB SSD, 60Wh battery, weighing 670 g, priced at $600 [12][13] - Both devices feature 7-inch 1080p resolution screens with 120 Hz refresh rate and 500 nits max brightness [15] Competitive Analysis - Ally offers broader game support than Steam Deck due to Windows compatibility, bypassing anti-cheat software limitations [16][17][18] - Ally X generally outperforms Steam Deck OLED in graphically intensive games, achieving higher resolutions and frame rates [19][20][21][22][23][24] - Steam Deck offers a more streamlined user experience, avoiding Windows OS conflicts [28][29] Market Positioning & Recommendation - Ally is suitable for those without existing handhelds, especially with PS5 or gaming PC setups, leveraging Steam discounts and offline Game Pass [30][31] - Considering the higher price of Ally X ($1,000), a Steam Deck ($400) or Switch 2 ($500) may suffice for users with stronger home machines or those primarily playing smaller titles [32][33] - Neither Ally includes a carrying case, requiring an additional $40-$70 investment [31][32]

Group 1 - Omdia forecasts that global sales of handheld PCs, including Steam Deck, will reach 2.3 million units in 2025, a 32% increase from 1.7 million units in 2024 [1] - By 2029, annual sales of handheld PCs are expected to reach 4.7 million units [1] - Current challenges for PC manufacturers include Windows 11 not being fully optimized for handheld gaming and a lack of generational performance leap compared to leading products like Steam Deck [1] Group 2 - The upcoming new gaming mode in Windows 11 is expected to significantly enhance the user experience for handheld PCs by 2025 [1] - The first Xbox-branded handheld is set to launch at the end of 2025, potentially attracting a broader user base beyond just hardcore gamers [1] - Microsoft is collaborating with AMD to provide semi-custom APU solutions for PC manufacturers, which will help achieve a generational performance leap for handheld devices [1] Group 3 - The handheld PC market coexists with desktop and laptop gaming products, with similar trends observed in Sony's PlayStation Portal [4] - By the end of 2024, PlayStation Portal is projected to achieve over 3% attach rate with PS5 [4] - The launch of Nintendo Switch 2 in 2025 is expected to initiate a new console cycle in the handheld market, with combined sales of Switch 2 and Switch projected to exceed 20 million units [4] Group 4 - Nintendo continues to leverage traditional console strategies for Switch 2, focusing on exclusive content and synchronized marketing to drive sales [4] - However, it is unlikely that Switch 2 will replicate the initial success of the original Switch, as the unique selling point of high-quality mobile gaming has become widespread [4] - The upgrade cycle of Switch 2 presents opportunities for other platform manufacturers and hardware suppliers to attract Switch users to their handheld products [4]

Core Viewpoint - The ROG Xbox Ally series, launched by Microsoft in collaboration with ASUS, is not a traditional Xbox handheld but rather a Windows 11 PC disguised as an Xbox device, limiting its compatibility with existing Xbox game libraries [1][2]. Group 1: Product Overview - The ROG Xbox Ally series is marketed as part of the Xbox ecosystem but fundamentally operates as a Windows 11 device, which can only run Xbox games that support the Xbox Play Anywhere (XPA) service [1][2]. - The device's operating system, referred to as "Xbox UI," is essentially a customized version of Windows 11, optimized for gaming but not a true Xbox handheld [2][3]. Group 2: Xbox Play Anywhere (XPA) Service - The XPA service, launched in 2016, allows players to switch seamlessly between Xbox consoles and Windows PCs, but its popularity has declined significantly since the pandemic, with only 7% of games supporting it as of 2024 [3][4]. - The decline in XPA support is attributed to developers' reluctance to optimize games for both Xbox and PC platforms, leading to a limited library of only around 1,400 games over eight years [4][5]. Group 3: Market Positioning and Challenges - Microsoft appears to be targeting Xbox players with the Ally series, avoiding direct competition in the crowded Windows handheld market by using ambiguous marketing language [2][3]. - The Xbox platform's smaller active device base compared to competitors like PlayStation results in lower prioritization from developers, making it challenging for Xbox Ally to gain traction similar to devices like the Steam Deck [5].

Product Launch - Lenovo Legion Go 2 is officially launching in October with a starting price of $1,049 [1] - The device features detachable Legion TrueStrike controllers and an 8.8" OLED display [1] Market Positioning - The product is positioned as a hybrid of the Switch and Steam Deck [1] - The industry is questioning whether Nintendo or Valve should be concerned about this new gaming handheld [1] Features - The device includes 3 user-programmable buttons [1]

Product Comparison - The industry notes the Steam Deck and Switch 2 cater to different gaming preferences, with the Switch 2 focusing on Nintendo exclusives and the Steam Deck offering a vast library of indie and exploratory games [2][3] - The Switch 2 features detachable controllers, a dock, and a kickstand for versatile multiplayer experiences, while the Steam Deck's controllers are not detachable and lacks a kickstand, making it less suitable for multiplayer [3] - The Steam Deck offers a potentially better battery life compared to the Switch 2 [5] - The Steam Deck has sturdier feeling controls, while the Switch 2's Joy-Cons are modular but could benefit from improved sturdiness [4] Pricing and Portability - The industry observes that the Steam Deck and Switch 2 are similarly priced, depending on the Steam Deck configuration [5] - The Switch 2 is more portable than the chunkier Steam Deck, despite having a similar weight [4] Display and User Experience - The Steam Deck's fancier model features an OLED display with vividness and a faster refresh rate [4] - The Steam Deck is primarily designed for handheld mode, which may not appeal to all users [3][4]

Core Insights - Valve's Steam Deck has achieved significant success, selling over 4 million units globally by August 2025, despite initial skepticism from the market [1] - Valve is reportedly developing a new gaming device, codenamed Fremont, which features a custom AMD Hawk Point 2 processor and advanced GPU capabilities [3][5] - The Fremont device aims to target the PC and console gaming market, contrasting with the previous Steam Machine's failure due to lack of game support [6][9] Group 1: Product Performance - The Fremont device is equipped with a 6-core, 12-thread CPU based on the ZEN 4 architecture, with a base frequency of 3.2GHz and a maximum boost frequency of 4.8GHz [3] - It features a GPU based on the RDNA 3 architecture, potentially a variant of the Radeon RX 7600, with 28-32 compute units and at least 8GB of dedicated video memory [5] - The performance of the Fremont device is positioned to be superior to that of the Steam Deck, which has a less powerful 4-core, 8-thread CPU and integrated graphics [3][5] Group 2: Market Context - Valve's initial foray into hardware with Steam Machines was unsuccessful, primarily due to competition from Microsoft's Windows ecosystem and a lack of game support on Steam OS [7][9] - The gaming landscape has evolved, with 2K resolution becoming increasingly important for PC and console gaming, posing a challenge for the Fremont device to meet performance expectations [11][12] - The success of the Fremont device is uncertain, as it may face similar pitfalls as the Steam Machine, particularly regarding its ability to deliver high-quality gaming experiences [11][12]

Core Viewpoint - The ROG Xbox Ally, set to release on October 16, is positioned as a significant competitor in the handheld gaming market, particularly against the Nintendo Switch 2 and Steam Deck, due to its optimized Windows system for gaming [1][21]. Group 1: Product Overview - The ROG Xbox Ally features high-end specifications, including AMD Ryzen Z2 A processor, 16GB RAM, and 512GB ROM, while the ROG Xbox Ally X boasts an AMD Ryzen AI Z2 Extreme processor, 24GB RAM, and 1TB ROM [26]. - Pricing rumors suggest the mid-range ROG Xbox Ally will be priced at approximately €599 (around ¥4986.68) and the high-end ROG Xbox Ally X at €899 (around ¥7486.73) [1]. Group 2: System and Interface - The device runs a customized version of Windows optimized for handheld use, allowing users to bypass the traditional Windows interface and directly access a new Xbox interface [2][4]. - This new interface conserves system resources by not loading unnecessary Windows components, saving about 2GB of RAM for gaming [4]. Group 3: Compatibility and Features - The Xbox interface integrates features for managing Bluetooth and Wi-Fi connections and allows compatibility with other gaming platforms like Steam, enabling users to access their Steam library without switching to the Windows interface [5]. - A new "handheld compatibility program" has been announced, which tests and certifies thousands of games for compatibility with the handheld device [5][7]. Group 4: Performance Insights - Early tests show that the ROG Xbox Ally X can run games like "Doom Eternal" at an average frame rate of 83 FPS at 1080P with medium settings, while "Gears of War: Ultimate Edition" maintains a stable 60 FPS [14][15]. - The lower-spec ROG Xbox Ally is better suited for indie games, achieving 40-45 FPS on "Forza Horizon 5" at low settings [18]. Group 5: Market Position and Future Considerations - The ROG Xbox Ally is seen as a strong contender in the handheld market, leveraging Microsoft's optimization of Windows to potentially surpass SteamOS in performance [21][23]. - The success of the ROG Xbox Ally will depend on maintaining a high-quality user experience across future devices, as the brand expands [24].