The most notable difference between the Xbox Ally and the Steam Deck is the operating system. Like the ROG Ally, the Xbox Ally will also use Windows 11, while the Steam Deck uses Valve's SteamOS.

Both models of the handheld launch on the same day globally, save for a handful of regions. Thailand, Brazil, Indonesia, and India won’t have availability until a bit later. Additionally, the less expensive ROG Xbox Ally model won’t be available in China until early 2026.

Microsoft Corp. is re-entering the portable gaming market with its Xbox ROG Ally console, targeting Nintendo Co. Ltd.'s dominant Switch 2.