When ASUS and Microsoft revealed the $999 price tag for the ROG Xbox Ally X back in September, the internet collectively lost its mind. That’s a thousand dollars for a handheld Windows PC with Xbox branding. Critics called it overpriced, DOA, and a guaranteed flop. Fast forward to November 2025, and ASUS just admitted to investors that they completely misjudged demand. The high-end model is selling out everywhere, and they’re rushing to build more units to meet unexpected demand.
The Price That Shocked Everyone
The ROG Xbox Ally comes in two versions. The base model costs $599 and features an AMD Ryzen Z2 A processor with 16GB of RAM and 512GB of storage. That’s already pricey for a handheld, but it’s at least in the ballpark of competitors like the Steam Deck OLED.
Then there’s the ROG Xbox Ally X at $999. For that premium, you get an AMD Ryzen AI Z2 Extreme processor, 24GB of LPDDR5X RAM, 1TB of storage, an 80Wh battery (compared to 60Wh in the base model), and impulse triggers instead of standard Hall Effect triggers. Oh, and one USB4 port with Thunderbolt 4 support. That’s a significant spec bump, but we’re still talking about a thousand-dollar handheld PC.
What ASUS Told Investors
During the Q3 2025 earnings call in mid-November, ASUS CFO Nick Wu responded to questions from Morgan Stanley about the Xbox Ally lineup. His answer was pretty revealing. Wu stated that the market response has been extremely positive, and demand for the premium high-end models exceeded their expectations. Those high-end variants are currently in short supply, and ASUS is working closely with component suppliers to ramp up production.
In plain English, ASUS didn’t make enough of the expensive one because they thought nobody would buy a thousand-dollar Xbox handheld. They were wrong. Really wrong. ASUS now expects the Ally product line to generate between 3 billion to 5 billion Taiwan dollars in Q4 revenue, which translates to roughly $96 million to $160 million. Industry analyst Daniel Ahmad suggested this likely means hundreds of thousands of units sold during the October to December quarter.
The Numbers From Spain Tell the Story
While overall sales figures are limited, we do have some regional data. In Spain, the ROG Xbox Ally sold around 1,000 units in its first week. Over 800 of those were the $999 Xbox Ally X model. That’s an 80 percent attach rate for the premium version. The second week saw another 350 units sold. These aren’t blockbuster numbers, but they clearly show consumers are gravitating toward the high-end model despite the price.
Xbox president Sarah Bond also confirmed during an October interview that the $999 Xbox Ally X pre-orders sold out on the Xbox Store and that systems are selling really quickly at retailers around the world. For a device that launched on October 16, 2025, selling out of pre-orders is a strong signal that there’s real demand here.
Why Are People Buying This Thing
On paper, paying $999 for a handheld Windows PC sounds absurd. But the ROG Xbox Ally X offers something unique – a true console-like experience on PC hardware with seamless Xbox integration. The devices are the first Windows systems to support a new boot mode that loads directly into the Xbox app without running the full Windows shell. Microsoft claims this saves up to 2GB of memory and reduces idle power consumption by two-thirds.
That feature is exclusive to the ROG Ally devices until 2026, when it will roll out to other Windows handhelds. Combined with controller-friendly Windows improvements, better task switching, and full Game Pass integration with cloud gaming support, the Xbox Ally offers a more polished experience than competing Windows handhelds that feel like jury-rigged gaming PCs.
The Specs Justify the Price
Let’s be honest about what you’re getting for a thousand dollars. The AMD Ryzen AI Z2 Extreme processor is based on Zen 5 architecture with 16 RDNA 3.5 graphics cores and includes a neural processing unit. That’s significantly more powerful than the Steam Deck or even the original ROG Ally from 2023. The 24GB of LPDDR5X-8000 RAM is absurd for a handheld and ensures you can run AAA games with room to spare.
The 7-inch 1080p IPS display runs at 120Hz with FreeSync Premium and variable refresh rate support. It’s covered in Gorilla Glass Victus with anti-reflection coating. The 80Wh battery is one of the largest in any gaming handheld, addressing one of the biggest complaints about the Steam Deck and original ROG Ally. The impulse triggers provide haptic feedback similar to Xbox controllers, and the device includes HD haptics and a 6-axis IMU for motion controls.
Linux Users Are Having a Field Day
Here’s an interesting twist – while the Xbox Ally ships with Windows 11 and Xbox integration, some users have already started installing Linux distributions like Bazzite on the hardware. Analysis found that switching to Bazzite greatly increased performance. Kingdom Come Deliverance 2, for example, saw frame rates increase by 32 percent with improved stability. The device also wakes from sleep states faster on Linux compared to Windows.
That’s kind of ironic. Microsoft and ASUS built this whole Xbox-integrated Windows experience, and Linux users immediately proved the hardware performs better without it. To be fair, the Xbox shell mode does reduce resource usage compared to full Windows, but it still can’t match a lightweight Linux gaming distro optimized for handhelds.
Microsoft Says ASUS Set the Price
When the pricing was announced and people started complaining, Microsoft was quick to clarify that ASUS, not Microsoft, determined the final retail prices. Xbox president Sarah Bond addressed this directly in an October interview, essentially saying Xbox handled the software and branding partnership while ASUS made all the hardware and pricing decisions.
This is technically true – the ROG Xbox Ally is an ASUS product under the ROG brand that happens to have deep Xbox integration. But it’s also convenient deflection. Microsoft clearly wanted this partnership and promoted it heavily during the Xbox Games Showcase in June. They can’t take credit for the collaboration and then disavow responsibility when people don’t like the price.
The Naming Is Still Ridiculous
We need to talk about the elephant in the room. The device is called the ROG Xbox Ally X. If you own an Xbox Series X, you now have the Xbox Series X ROG Xbox Ally X. That’s not a joke. That’s the actual product name. One Reddit user perfectly summed up the collaboration by asking if it was aimed solely at maintaining the complex naming convention for the Xbox brand. It’s genuinely difficult to parse what this thing is called or how it relates to other Xbox products.
What This Means for Handheld Gaming
ASUS positioning the ROG Ally as a core pillar of their gaming portfolio suggests they’re committed to this category long-term. The success of the Xbox Ally X despite its premium price indicates there’s a real market for high-end handheld PCs that offer more than just raw specs. Consumers are willing to pay for polish, integration, and a console-like experience on Windows hardware.
This also validates Microsoft’s strategy of partnering with OEMs rather than building their own handheld. Reports earlier this year suggested Microsoft canceled a planned first-party Xbox handheld in favor of focusing on the ASUS partnership and Windows optimizations. That decision is looking smarter now that the Xbox Ally is exceeding sales expectations.
FAQs
How much does the ROG Xbox Ally X cost?
The ROG Xbox Ally X retails for $999 in the US and €899 in Europe. The base ROG Xbox Ally costs $599 in the US and €599 in Europe. Both models launched on October 16, 2025.
What are the main differences between the Ally and Ally X?
The Ally X features an AMD Ryzen AI Z2 Extreme processor (vs Ryzen Z2 A), 24GB RAM (vs 16GB), 1TB storage (vs 512GB), an 80Wh battery (vs 60Wh), impulse triggers, and USB4/Thunderbolt 4 support. The Ally X is significantly more powerful and has better battery life.
Is the ROG Xbox Ally selling well?
Yes. ASUS admitted during their Q3 2025 investor call that demand for the high-end Xbox Ally X exceeded their expectations. The devices are in short supply and ASUS is ramping up production. They expect $96-160 million in revenue from Ally sales in Q4 2025.
Can you play Xbox games on the ROG Xbox Ally?
Yes. The device boots directly into the Xbox app and supports Game Pass with cloud gaming. However, not all Xbox games are compatible with Windows, which limits the library compared to actual Xbox consoles.
Who set the price for the ROG Xbox Ally?
ASUS set the pricing, not Microsoft. Xbox president Sarah Bond clarified that while Microsoft handled the software integration and branding partnership, ASUS made all hardware and pricing decisions.
Can you install Linux on the ROG Xbox Ally?
Yes. Users have successfully installed Linux distributions like Bazzite, which reportedly increases performance significantly compared to Windows 11. Kingdom Come Deliverance 2 saw 32 percent higher frame rates on Linux.
When will other Windows handhelds get the Xbox boot mode?
The Xbox app boot mode that bypasses the full Windows shell is exclusive to ROG Ally devices until 2026, when Microsoft plans to make it available to other Windows-based gaming handhelds.
Conclusion
ASUS bet that gamers would pay premium prices for a premium handheld experience, and despite all the initial skepticism, they were right. The ROG Xbox Ally X is selling out at $999 because it offers something genuinely different – true console-like polish on Windows hardware with seamless Xbox integration and specs that embarrass competing handhelds. ASUS admitting they underestimated demand and are scrambling to ramp up production is the clearest signal yet that the high-end handheld PC market is real and growing. Whether that justifies a thousand dollars for a portable gaming device is up to you, but clearly enough people think it does. The question now isn’t whether the Xbox Ally will succeed, but how many other manufacturers will follow ASUS into the premium handheld space.