TAIPEI (Taiwan News) — Asus and Microsoft are teaming up to release the first Xbox handheld console, aiming for a holiday launch to take on Nintendo’s Switch 2.

The Republic of Gamers (ROG) Xbox Ally and its higher-end variant, the ROG Xbox Ally X, will be powered by AMD Ryzen processors and mark Microsoft’s debut in the handheld gaming market. Xbox President Sarah Bond unveiled the devices on Sunday, calling the handheld “an Xbox you can hold in your hands,” per CNA.

The consoles will support games from Xbox Game Pass, Steam and Ubisoft Connect. They mirror Xbox controller ergonomics—with familiar buttons, triggers and grips—and feature a full-screen Xbox interface optimized for portable play.

Asus co-CEO S.Y. Hsu (許先越) said the original ROG Ally, launched two years ago, helped round out the company’s gaming ecosystem. He added that the ROG Xbox Ally series could contribute up to NT$10 billion (US$334.14 million) in quarterly revenue.

Analysts told UDN the partnership is seen as a strategic move to spark the next phase of the handheld gaming race and could boost business not only for Asus but also for component suppliers such as Inventec, Acer and MSI.

Pricing and release dates for the ROG Xbox Ally and ROG Xbox Ally X will be announced in the coming months.