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Microsoft and Asus Team Up to Challenge Steam Deck with New ROG Xbox Ally

6/9/2025
Microsoft and Asus are revolutionizing portable gaming with the ROG Xbox Ally, a handheld that combines the best of SteamOS and Windows. This innovative device promises seamless compatibility and a user-friendly interface, challenging the dominance of the Steam Deck.
Microsoft and Asus Team Up to Challenge Steam Deck with New ROG Xbox Ally
Discover how Microsoft and Asus' ROG Xbox Ally is set to redefine handheld gaming with a new Xbox interface that enhances compatibility and performance over Steam Deck.

Exploring the Limitations of Valve's Steam Deck and SteamOS

One notable weakness of Valve's Steam Deck gaming handheld and its operating system, SteamOS, is their inherent limitation in running Windows games. By default, these platforms only support games that are compatible with the Proton compatibility layer or those that run natively on Linux. Although users can install alternative game stores, the overall experience falls short of being a true replacement for Windows gaming.

The ROG Xbox Ally: A Compelling Alternative

In response to these limitations, Microsoft and Asus have co-developed the ROG Xbox Ally, which aims to provide PC gamers with a more comprehensive compatibility solution. This innovative handheld device overlays a new Xbox-branded user interface on traditional Windows, effectively merging familiar gaming experiences with enhanced usability.

Initially, this Xbox interface will be exclusive to the ROG Xbox Ally, but Microsoft has indicated that similar interfaces will be available for other Ally handhelds and various Windows handhelds starting next year. This move is part of Microsoft's broader strategy to bring a Steam Deck-style handheld UI to the Windows platform, something the company has been experimenting with since at least 2022. During an internal hackathon, Microsoft employees identified several deficiencies in Windows for handheld devices, leading to discussions about a proposed Windows Handheld Mode.

Enhanced User Experience with Xbox Interface

The new Xbox interface introduces a tile-based, Switch-style gamepad UI that aims to improve the overall gaming experience on handheld devices. This interface replaces the traditional desktop and taskbar setup, which, according to Microsoft, can conserve up to a couple of gigabytes of RAM while also reducing energy consumption and other system resources. In contrast, handhelds running the standard version of Windows, like the regular ROG Ally, face additional overhead from software such as Asus' Armoury Crate, which bridges the gap between SteamOS and Windows gaming.

While the Xbox interface will dominate the user experience, a traditional desktop UI will still be accessible on the ROG Xbox Ally, although users must actively choose to launch it. There is hope that this interface will eventually be available for generic Windows PCs, allowing for resource savings by disabling the conventional Windows UI.

Microsoft's Slow Reaction and Its Impact on SteamOS

Microsoft's slow response to the emergence of SteamOS and the Steam Deck raises questions about its strategy in the gaming handheld market. Initially, the success of these devices seemed uncertain, and they do not pose a significant threat to traditional gaming PCs, which remain far more powerful. Over the past two years, Microsoft has prioritized developments in AI and security, potentially to the detriment of other significant innovations.

This delay has inadvertently allowed the Steam Deck and SteamOS to thrive. The software enables users to run a variety of Windows games without needing to install Windows itself, thanks to advancements in projects like Proton and Wine. As a result, SteamOS has begun to expand to other non-Steam Deck gaming handhelds and PCs, including some of Asus' ROG Ally hardware.

The Future of Windows Gaming

Despite the growth of SteamOS, there has yet to be a mass migration away from Windows in consumer PCs. Nevertheless, Linux's market share has gradually increased, surpassing 4% for the first time last year. For decades, the main selling point of Windows has been its wide compatibility with both new and legacy Windows applications and games. However, with the rise of Proton and similar projects, the cycle of lock-in that has favored Windows over the years may face challenges, especially if the Windows installation process becomes increasingly cumbersome.

In summary, while Valve's Steam Deck and SteamOS present unique opportunities for gaming, Microsoft's ROG Xbox Ally introduces a promising alternative that seeks to enhance compatibility and usability for gamers. As the landscape of handheld gaming evolves, the competition between these platforms will be essential in shaping the future of Windows gaming.

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