Redmond, WA – Microsoft (MSFT) is stepping into the handheld console arena for the first time, directly competing with Nintendo’s (NTDOY) newly unveiled Switch 2 (launched June 5). The tech giant unveiled two devices under its Xbox gaming division: the ROG Xbox Ally and the premium ROG Xbox Ally X , both promising cross-device gaming experiences "anytime, anywhere, on any device."
A New Era for Portable Gaming
Microsoft positions its handheld consoles as transformative for gamers, enabling play via local hardware, cloud streaming, or remote access to an Xbox console in another room. “ROG Xbox Ally puts player choice at the center of the experience,” the company stated. The move follows Nintendo’s long dominance in handhelds (Game Boy, DS, Switch) and Sony’s (SONY) brief but notable PS Vita (15M+ sold).
Key Differentiators
- Hardware :
- ROG Xbox Ally X : AMD Ryzen AI Z2 Extreme processor (Advanced Micro Devices, AMD).
- ROG Xbox Ally : AMD Ryzen Z2 processor.
- Nintendo Switch 2 : NVIDIA (NVDA) chip, leveraging its AI/GPU expertise.
Exclusive Partnership :
Microsoft teamed with Roblox (RBLX) to optimize the platform for local play on handhelds—a first for Roblox.Market Strategy
Launch Timing : Holiday 2025, directly competing with Nintendo during peak shopping season.
Pricing : Unannounced (Switch 2 retails at $450). Pre-order details forthcoming.
Audience : Microsoft and Nintendo cater to distinct fan bases with exclusive titles, setting the stage for a heated 2025 rivalry.
Financial Context
Microsoft shares rose 0.50% to $472.75 on Monday (June 10), hitting an all-time intraday high of $473.43. Year-to-date (2025), MSFT is up 13%.