The Asus ROG Xbox Ally is Microsoft's big push into handheld gaming, but it isn't gunning for the Nintendo Switch 2. It's got Valve's Steam Deck in its sights.

The Xbox Ally X is taking a different approach with its 1080p 120Hz LCD display. Not only does it have a higher resolution, but it's also faster than even the 90Hz Steam Deck OLED, which is huge for games that can actually run that fast on a handheld.

In a major leap into the handheld gaming market, Microsoft in collaboration with ASUS on Sunday officially announced two new handhelds—the “ROG Xbox Ally”