Microsoft used the Gamescom fair in Cologne to unveil the ROG Xbox Ally, its first handheld Xbox console, marking the company’s return to the portable-hardware market. The device, co-developed with Taiwan’s Asus, will reach stores on 16 October; Microsoft has not yet disclosed pricing. The unit resembles an elongated Xbox controller with an integrated display and runs a customised version of Windows 11. A new “My apps” section inside the Xbox PC app lets users install and launch third-party software such as Steam and Battle.net directly from the handheld interface, underlining Microsoft’s push to blur the lines between Windows and Xbox ecosystems. “We’re designing an ecosystem of devices so people can play where they want, how they want,” said Jason Ronald, vice-president for Xbox console development. The company hopes the portable will revive flagging console sales and drive engagement with its Game Pass subscription service. Microsoft enters a fast-growing segment led by Nintendo’s Switch 2, which has shipped 5.8 million units in seven weeks, and Valve’s Steam Deck. Sony remains largely absent from the race after its earlier PlayStation Vita fizzled, although it offers the streaming-only PlayStation Portal. In parallel, Microsoft is testing additional handheld-friendly software updates—such as a unified games library inside the Xbox app—to support what executives describe as a longer-term effort to merge the best of Windows and Xbox for mobile gaming.