Microsoft's Xbox handheld could take on the Switch 2 in October – but we still don't know one big detail that could seal its fate

Microsoft's ROG Xbox Ally handhelds could launch in OctoberSome rumors suggest the ROG Xbox Ally will be $499, and the Xbox Ally X will cost $799A price point for the MSI Claw A8, using the same processor, is also unconfirmedHandhelds are arguably dominating the console and PC gaming market, with the long-awaited Nintendo Switch 2 now available and Microsoft's ROG Xbox Ally slated for launch late this year. However, the latter may have one significant dealbreaker.As reported by our reliable friends at Windows Central, both the ROG Xbox Ally and Xbox Ally X are rumored to launch in late October. However, pricing is still up in the air, despite other rumors suggesting the base model will cost $499 and the more powerful Xbox Ally X will go for $799.The ROG Xbox Ally X will join the MSI Claw A8 in being the first handheld gaming PCs to use AMD's Ryzen Z2 Extreme processor, except Microsoft's handheld will use an AI variant. It's not exactly clear if this will have an edge over the standard Z2 Extreme – but one thing that's becoming slightly evident is the reasoning for the undisclosed price point.It appears as though a combination of uncertainty on tariffs on Taiwan and China (where Asus manufactures products), and MSI not announcing a price for the Claw A8, could be why we're left in the dark on the ROG Xbox Ally pricing for now.We haven't seen the performance capabilities of the Z2 Extreme on handhelds, so perhaps Microsoft is waiting for MSI or even Lenovo (with the Legion Go 2 successor using the same chip) to set the pace before committing to a price point.It's also worth noting that the Asus ROG Ally X recently saw a price hike from $799.99 (£799 / AU$1,599) to $899, so concerns about a potential outrageous price (at least for the ROG Xbox Ally X) are warranted. The base model will use a new Ryzen Z2A processor – which is more aligned with the Steam Deck's chip in performance, using RDNA 2 architecture – so its price may be akin to the Nintendo Switch 2's.Analysis: I'm not worried about the ROG Xbox Ally's price, but I'm very concerned about the ROG Xbox Ally X(Image credit: Microsoft)To put it simply, if the ROG Xbox Ally X ends up with a higher price point than the likes of the MSI Claw 8 AI+, Microsoft can kiss its success goodbye.The MSI Claw 8 AI+ is priced at $900 / £899 / AU$1,799, which is already a very steep price tag that is enough to turn gamers away from a purchase. That isn't me downplaying the device's gaming capabilities, but it's a tough sell in this economy.The ROG Xbox Ally X won't have an 8-inch screen (which is a huge dealbreaker to me), and is using the same processor as the Claw A8, which is indeed using an 8-inch display. Unless the AI Z2 Extreme outperforms both the standard Z2 Extreme, and the Claw 8 AI+'s Core Ultra 7 258V processor, then the ROG Xbox Ally X has no place costing over $900.I'm expecting its weaker counterpart, the ROG Xbox Ally, to do just fine as a more affordable option, if it's under or slightly closer to the Switch 2's price ($449.99 / £395.99 / AU$699.99).Handheld hardware is getting better each year, which obviously comes with a cost increase, but it's important that prices don't go out of whack away from affordability. There's a reason Ayaneo's handhelds aren't in the spotlight, because they cost over $1,000 – and Microsoft better not even think about going there.You might also like...Xbox president Sarah Bond announces that Xbox has formed a 'strategic multi-year partnership' with AMD for its next generation of consoles, handhelds and accessoriesXbox Games Showcase 2025: everything revealed from Call of Duty: Black Ops 7 and Persona 4 remake to a new handheldNew Xbox Series X games 2025 - the most anticipated Xbox release dates