The most notable difference between the Xbox Ally and the Steam Deck is the operating system. Like the ROG Ally, the Xbox Ally will also use Windows 11, while the Steam Deck uses Valve's SteamOS.

Xbox had a massive presence at Gamescom this year, but opted to dedicate a huge booth to demoing games not on its traditional hardware, but instead the upcoming ROG Xbox Ally X. Officially announced earlier this year,

Microsoft Corp. is re-entering the portable gaming market with its Xbox ROG Ally console, targeting Nintendo Co. Ltd.'s dominant Switch 2.